TIER REIT (NYSE: TIER) is one of 17 public companies in the “Office REITs” industry, but how does it weigh in compared to its peers? We will compare TIER REIT to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of current recommendations for TIER REIT and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIER REIT 0 0 2 0 3.00
TIER REIT Competitors 120 529 542 3 2.36

TIER REIT currently has a consensus target price of $20.50, suggesting a potential upside of 4.22%. As a group, “Office REITs” companies have a potential upside of 9.38%. Given TIER REIT’s peers higher possible upside, analysts plainly believe TIER REIT has less favorable growth aspects than its peers.

Profitability

This table compares TIER REIT and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIER REIT 40.68% 12.86% 5.60%
TIER REIT Competitors 10.24% 3.57% 1.50%

Earnings & Valuation

This table compares TIER REIT and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TIER REIT $242.82 million -$29.41 million 10.81
TIER REIT Competitors $741.50 million $133.14 million 27.84

TIER REIT’s peers have higher revenue and earnings than TIER REIT. TIER REIT is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

TIER REIT has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, TIER REIT’s peers have a beta of 0.89, indicating that their average stock price is 11% less volatile than the S&P 500.

Dividends

TIER REIT pays an annual dividend of $0.72 per share and has a dividend yield of 3.7%. TIER REIT pays out 39.6% of its earnings in the form of a dividend. As a group, “Office REITs” companies pay a dividend yield of 3.3% and pay out 154.7% of their earnings in the form of a dividend. TIER REIT is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

57.5% of TIER REIT shares are held by institutional investors. Comparatively, 84.5% of shares of all “Office REITs” companies are held by institutional investors. 1.2% of TIER REIT shares are held by company insiders. Comparatively, 3.0% of shares of all “Office REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

TIER REIT beats its peers on 8 of the 15 factors compared.

About TIER REIT

TIER REIT, Inc. is a real estate investment trust. The Company’s business consists of owning, acquiring, developing, operating, investing in, and disposing of real estate assets. The Company’s business is conducted through Tier Operating Partnership LP (Tier OP). As of December 31, 2016, the Company owned interests in 29 operating office properties, one non-operating property and one development property located in 13 markets throughout the United States. It owns properties located in metropolitan cities and suburban markets in the United States. The Company’s office properties include The Terrace Office Park, Domain 3, Domain 4, 5950 Sherry Lane, Burnett Plaza, Loop Central, One BriarLake Plaza, Three Eldridge Place, Eisenhower I, Forum Office Park, 500 E. Pratt, Woodcrest Corporate Center and 111 Woodcrest. The Company’s properties are located in Austin, Dallas, Houston, Charlotte, Nashville, Atlanta and Denver.

Receive News & Ratings for TIER REIT Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TIER REIT and related companies with Analyst Ratings Network's FREE daily email newsletter.