Critical Survey: British Land (OTCMKTS:BTLCY) & The RMR Group (NASDAQ:RMR)

The RMR Group (NASDAQ:RMR) and British Land (OTCMKTS:BTLCY) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

42.3% of The RMR Group shares are held by institutional investors. 54.9% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for The RMR Group and British Land, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The RMR Group	2	0	1	1	2.25
British Land	0	1	2	2	3.20

The RMR Group currently has a consensus target price of $20.50, suggesting a potential upside of 24.47%. Given The RMR Group’s higher probable upside, research analysts clearly believe The RMR Group is more favorable than British Land.

Dividends

The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 10.9%. British Land pays an annual dividend of $0.22 per share and has a dividend yield of 4.0%. The RMR Group pays out 171.4% 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.

Volatility and Risk

The RMR Group has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, British Land has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares The RMR Group and British Land”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The RMR Group	$700.28 million	0.75	$17.60 million	$1.05	15.69
British Land	$571.65 million	9.55	$431.25 million	N/A	N/A

British Land has lower revenue, but higher earnings than The RMR Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The RMR Group	2.48%	4.60%	2.80%
British Land	N/A	N/A	N/A

Summary

The RMR Group beats British Land on 9 of the 16 factors compared between the two stocks.

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.

About British Land

Our portfolio of high quality UK commercial property is focused on London Campuses and Retail & London Urban Logistics assets throughout the UK. We own or manage a portfolio valued at £13.0bn (British Land share: £8.9bn) as at 31 March 2023 making us one of Europe's largest listed real estate investment companies. We create Places People Prefer, delivering the best, most sustainable places for our customers and communities. Our strategy is to leverage our best in class platform and proven expertise in development, repositioning and active management, investing behind two key themes: Campuses and Retail & London Urban Logistics. Our three Campuses at Broadgate, Paddington Central and Regent's Place are dynamic neighbourhoods, attracting growth customers and sectors, and offering some of the best connected, highest quality and most sustainable space in London. We are delivering our fourth Campus at Canada Water, where we have planning consent to deliver 5m sq ft of residential, commercial, retail and community space over 53 acres. Our Campuses account for 63% of our portfolio. Retail & London Urban Logistics accounts for 37% of the portfolio and is focused on retail parks which are aligned to the growth of convenience, online and last mile fulfilment. We are complementing this with urban logistics primarily in London, focused on development-led opportunities. Sustainability is embedded throughout our business. Our approach is focused on three key pillars where British Land can create the most benefit: Greener Spaces, making our whole portfolio net zero carbon by 2030, Thriving Places, partnering to grow social value and wellbeing in the communities where we operate and Responsible Choices, advocating responsible business practices across British Land and throughout our supply chain, and maintaining robust governance structures.