Government Properties Income Trust (NASDAQ: BPY) and Brookfield Property Partners (NASDAQ:BPY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Profitability

This table compares Government Properties Income Trust and Brookfield Property Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Government Properties Income Trust 7.42% 2.16% 0.79%
Brookfield Property Partners 35.05% 4.97% 2.07%

Dividends

Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 10.1%. Brookfield Property Partners pays an annual dividend of $1.26 per share and has a dividend yield of 6.4%. Government Properties Income Trust pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Property Partners has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Government Properties Income Trust and Brookfield Property Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Government Properties Income Trust 4 1 2 0 1.71
Brookfield Property Partners 0 1 4 0 2.80

Government Properties Income Trust presently has a consensus price target of $16.00, suggesting a potential downside of 5.60%. Brookfield Property Partners has a consensus price target of $24.25, suggesting a potential upside of 23.03%. Given Brookfield Property Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Property Partners is more favorable than Government Properties Income Trust.

Insider & Institutional Ownership

58.2% of Government Properties Income Trust shares are owned by institutional investors. Comparatively, 63.1% of Brookfield Property Partners shares are owned by institutional investors. 1.3% of Government Properties Income Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Government Properties Income Trust has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Brookfield Property Partners has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Earnings and Valuation

This table compares Government Properties Income Trust and Brookfield Property Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Government Properties Income Trust $316.53 million 5.31 $12.09 million $2.02 8.39
Brookfield Property Partners $5.84 billion 0.88 $136.00 million N/A N/A

Brookfield Property Partners has higher revenue and earnings than Government Properties Income Trust.

Summary

Brookfield Property Partners beats Government Properties Income Trust on 12 of the 16 factors compared between the two stocks.

About Government Properties Income Trust

GOV is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States that are majority leased to government tenants and office properties in the metropolitan Washington, D.C. market area that are leased to government and private sector tenants. GOV is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

About Brookfield Property Partners

Brookfield Property Partners is one of the world's premier commercial real estate companies, with approximately $69 billion in total assets. We are leading owners, operators and investors in commercial real estate, with a diversified portfolio of premier office and retail assets, as well as interests in multifamily, triple net lease, industrial, hospitality, self-storage, student housing and manufactured housing assets. Brookfield Property Partners is listed on the Nasdaq stock market and the Toronto stock exchange. Further information is available at bpy.brookfield.com. Brookfield Property Partners is the flagship listed real estate company of Brookfield Asset Management, a leading global alternative asset manager with over $285 billion in assets under management.

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