Front Yard Residential (RESI) & Optibase (OBAS) Head-To-Head Analysis

Optibase (NASDAQ:OBAS) and Front Yard Residential (NYSE:RESI) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Dividends

Front Yard Residential pays an annual dividend of $0.60 per share and has a dividend yield of 6.7%. Optibase does not pay a dividend. Front Yard Residential has increased its dividend for 4 consecutive years.

Profitability

This table compares Optibase and Front Yard Residential’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Optibase -13.85% -3.03% -0.90%
Front Yard Residential -97.71% -20.47% -6.76%

Earnings and Valuation

This table compares Optibase and Front Yard Residential’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Optibase $16.59 million 2.67 -$1.12 million N/A N/A
Front Yard Residential $94.17 million 5.11 -$185.45 million N/A N/A

Optibase has higher earnings, but lower revenue than Front Yard Residential.

Analyst Ratings

This is a breakdown of current ratings and price targets for Optibase and Front Yard Residential, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Optibase 0 0 0 0 N/A
Front Yard Residential 0 0 2 0 3.00

Front Yard Residential has a consensus price target of $15.00, suggesting a potential upside of 66.85%. Given Front Yard Residential’s higher possible upside, analysts clearly believe Front Yard Residential is more favorable than Optibase.

Institutional & Insider Ownership

0.1% of Optibase shares are owned by institutional investors. Comparatively, 70.8% of Front Yard Residential shares are owned by institutional investors. 17.1% of Optibase shares are owned by insiders. Comparatively, 0.9% of Front Yard Residential shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Optibase has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Front Yard Residential has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Summary

Front Yard Residential beats Optibase on 8 of the 13 factors compared between the two stocks.

About Optibase

Optibase Ltd., together with its subsidiaries, operates in the fixed-income real estate sector in Switzerland, Germany, and the United States. The company purchases and operates real estate properties intended for leasing and resale primarily for the purpose of commercial, industrial, office space, parking garage, and warehouse use, as well as for residential purposes. The company was formerly known as Optibase Advanced Systems (1990) Ltd. and changed its name to Optibase Ltd. in November 1993. The company was founded in 1990 and is headquartered in Herzliya, Israel. Optibase Ltd. is a subsidiary of The Capri Family Foundation.

About Front Yard Residential

Front Yard is an industry leader in providing quality, affordable rental homes to America's families. Our homes offer exceptional value in a variety of suburban communities which have easy accessibility to metropolitan areas. Front Yard's tenants enjoy the space and comfort that is unique to single-family housing, at reasonable prices. Our mission is to provide our tenants with houses they are proud to call home.

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