Financial Review: The RMR Group (NASDAQ:RMR) and Ferrovial (NASDAQ:FER)

Ferrovial (NASDAQ:FER) and The RMR Group (NASDAQ:RMR) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Ferrovial and The RMR Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrovial	$9.86 billion	4.85	$1.00 billion	N/A	N/A
The RMR Group	$700.28 million	0.87	$17.60 million	$1.21	15.74

Ferrovial has higher revenue and earnings than The RMR Group.

Dividends

Ferrovial pays an annual dividend of $1.29 per share and has a dividend yield of 2.0%. The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 9.5%. The RMR Group pays out 148.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has raised its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Ferrovial and The RMR Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrovial	0	5	2	0	2.29
The RMR Group	0	2	2	0	2.50

Ferrovial currently has a consensus target price of $70.47, indicating a potential upside of 8.24%. The RMR Group has a consensus target price of $19.00, indicating a potential downside of 0.21%. Given Ferrovial’s higher probable upside, research analysts plainly believe Ferrovial is more favorable than The RMR Group.

Profitability

This table compares Ferrovial and The RMR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferrovial	N/A	N/A	N/A
The RMR Group	3.23%	3.44%	2.05%

Institutional and Insider Ownership

22.3% of Ferrovial shares are held by institutional investors. Comparatively, 42.3% of The RMR Group shares are held by institutional investors. 54.7% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Ferrovial has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, The RMR Group has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

The RMR Group beats Ferrovial on 9 of the 14 factors compared between the two stocks.

About Ferrovial

Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.