RMR Group (NASDAQ: RMR) is one of 61 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it weigh in compared to its competitors? We will compare RMR Group to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, profitability, earnings and dividends.

Institutional & Insider Ownership

34.5% of RMR Group shares are held by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are held by institutional investors. 55.3% of RMR Group shares are held by insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares RMR Group and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
RMR Group $271.73 million $42.29 million 23.14
RMR Group Competitors $419.19 million $31.78 million 778.16

RMR Group’s competitors have higher revenue, but lower earnings than RMR Group. RMR Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for RMR Group and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RMR Group 0 3 2 0 2.40
RMR Group Competitors 153 311 635 9 2.45

RMR Group presently has a consensus target price of $58.00, indicating a potential downside of 4.68%. As a group, “Real Estate Development & Operations” companies have a potential upside of 34.49%. Given RMR Group’s competitors stronger consensus rating and higher probable upside, analysts plainly believe RMR Group has less favorable growth aspects than its competitors.

Risk & Volatility

RMR Group has a beta of -0.71, indicating that its share price is 171% less volatile than the S&P 500. Comparatively, RMR Group’s competitors have a beta of 0.56, indicating that their average share price is 44% less volatile than the S&P 500.

Profitability

This table compares RMR Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RMR Group 15.56% 11.27% 8.33%
RMR Group Competitors -8.38% -3.07% 1.27%

Dividends

RMR Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. RMR Group pays out 38.0% of its earnings in the form of a dividend. As a group, “Real Estate Development & Operations” companies pay a dividend yield of 1.7% and pay out 40.9% of their earnings in the form of a dividend.

Summary

RMR Group competitors beat RMR Group on 9 of the 15 factors compared.

RMR Group Company Profile

The RMR Group Inc. is a holding company. The Company’s business is primarily conducted by its subsidiary, The RMR Group LLC (RMR LLC). The Company’s segments include RMR LLC and All Other Operations. RMR LLC manages a portfolio of publicly owned real estate and real estate related businesses. RMR LLC manages Government Properties Income Trust, a real estate investment trust (REIT) that primarily owns properties that are leased to government tenants; Hospitality Properties Trust, an REIT that primarily owns hotels and travel centers; Select Income REIT, an REIT that primarily owns properties leased to single tenants across the United States and leased lands in Hawaii, and Senior Housing Properties Trust, an REIT that primarily owns senior living communities and medical office buildings. As of June 30, 2016, RMR LLC managed over 1,300 properties, which were located in 48 states, Washington, District of Columbia, Puerto Rico and Canada.

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