Critical Survey: Covivio (GSEFF) versus The Competition

Covivio (OTCMKTS:GSEFF) is one of 111 publicly-traded companies in the “Diversified REITs” industry, but how does it compare to its rivals? We will compare Covivio to related businesses based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, profitability, dividends and risk.

Dividends

Covivio pays an annual dividend of $2.93 per share and has a dividend yield of 4.6%. Covivio pays out 99.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Diversified REITs” companies pay a dividend yield of 6.5% and pay out 208.3% of their earnings in the form of a dividend.

Profitability

This table compares Covivio and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Covivio	N/A	N/A	N/A
Covivio Competitors	-38.25%	-7.28%	-0.05%

Valuation and Earnings

This table compares Covivio and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Covivio	N/A	N/A	21.36
Covivio Competitors	$197.66 million	$18.17 million	8.55

Covivio’s rivals have higher revenue and earnings than Covivio. Covivio is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for Covivio and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Covivio	0	0	1	0	3.00
Covivio Competitors	478	2447	1919	20	2.30

As a group, “Diversified REITs” companies have a potential upside of 2.71%. Given Covivio’s rivals higher probable upside, analysts clearly believe Covivio has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

15.2% of Covivio shares are held by institutional investors. Comparatively, 39.2% of shares of all “Diversified REITs” companies are held by institutional investors. 11.9% of shares of all “Diversified REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Covivio beats its rivals on 7 of the 13 factors compared.

Covivio Company Profile

Thanks to its partnering history, its real estate expertise and its European culture, Covivio is inventing today's user experience and designing tomorrow's city. A preferred real estate player at the European level, Covivio is close to its end users, capturing their aspirations, combining work, travel, living, and co-inventing vibrant spaces. A benchmark in the European real estate market with 23.1 bn in assets, Covivio offers support to companies, hotel brands and territories in their pursuit for attractiveness, transformation and responsible performance. Build sustainable relationships and well-being, is the Covivio's Purpose who expresses its role as a responsible real estate operator to all its stakeholders: customers, shareholders and financial partners, internal teams, local authorities but also to future generations and the planet. Furthermore, its living, dynamic approach opens up exciting project and career prospects for its teams. Covivio's shares are listed in the Euronext Paris A compartment (FR0000064578 – COV), are admitted to trading on the SRD, and are included in the composition of the MSCI, SBF 120, Euronext IEIF SIIC France and CAC Mid100 indices, in the EPRA and GPR 250 benchmark European real estate indices, and in the ESG FTSE4 Good, CAC SBT 1.5°C, DJSI World & Europe, Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20), Euronext CDP Environment France EW, ISS ESG, Ethibel and Gaïa ethical indices and also holds the following awards and ratings: CDP (A), GRESB (90/100, 5-Star, 100% public disclosure), Vigeo-Eiris (A1+), ISS-ESG (B-) and MSCI (AAA).