RMR Group (NASDAQ: RMR) is one of 65 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it weigh in compared to its rivals? We will compare RMR Group to related businesses based on the strength of its valuation, profitability, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

34.4% 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 company insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

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

Analyst Recommendations

This is a summary of current recommendations and price targets for RMR Group and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RMR Group 0 3 2 0 2.40
RMR Group Competitors 153 365 809 9 2.50

RMR Group presently has a consensus price target of $58.00, indicating a potential downside of 4.68%. As a group, “Real Estate Development & Operations” companies have a potential upside of 34.14%. Given RMR Group’s rivals stronger consensus rating and higher probable upside, analysts plainly believe RMR Group has less favorable growth aspects than its rivals.

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 31.2% of their earnings in the form of a dividend. RMR Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares RMR Group and its rivals gross revenue, earnings per share 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 1,251.82

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

Profitability

This table compares RMR Group and its rivals’ 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 -6.93% -3.13% 0.91%

Summary

RMR Group rivals beat RMR Group on 10 of the 15 factors compared.

About RMR Group

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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