Select Income REIT (NASDAQ: SIR) is one of 85 public companies in the “Commercial REITs” industry, but how does it weigh in compared to its rivals? We will compare Select Income REIT to related companies based on the strength of its dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Profitability

This table compares Select Income REIT and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Select Income REIT 18.65% 4.18% 1.85%
Select Income REIT Competitors 50.87% 6.60% 3.77%

Valuation & Earnings

This table compares Select Income REIT and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Select Income REIT N/A N/A 24.74
Select Income REIT Competitors $482.34 million $305.34 million 32.33

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

Insider & Institutional Ownership

48.2% of Select Income REIT shares are held by institutional investors. Comparatively, 68.7% of shares of all “Commercial REITs” companies are held by institutional investors. 2.0% of Select Income REIT shares are held by company insiders. Comparatively, 8.3% of shares of all “Commercial REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Select Income REIT has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Select Income REIT’s rivals have a beta of 0.81, suggesting that their average share price is 19% less volatile than the S&P 500.

Dividends

Select Income REIT pays an annual dividend of $2.04 per share and has a dividend yield of 8.5%. Select Income REIT pays out 210.3% 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, “Commercial REITs” companies pay a dividend yield of 4.0% and pay out 205.1% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Select Income REIT and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Income REIT 0 0 1 0 3.00
Select Income REIT Competitors 626 2458 2124 22 2.29

Select Income REIT presently has a consensus target price of $34.00, indicating a potential upside of 41.67%. As a group, “Commercial REITs” companies have a potential upside of 6.08%. Given Select Income REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Select Income REIT is more favorable than its rivals.

Summary

Select Income REIT rivals beat Select Income REIT on 9 of the 13 factors compared.

About Select Income REIT

Select Income REIT is a real estate investment trust. The Company is engaged in the ownership of properties that include buildings and leased industrial lands that are primarily net leased to single tenants. As of December 31, 2016, the Company owned 121 properties (362 buildings, leasable land parcels and easements) with approximately 44.8 million rentable square feet. As of December 31, 2016, the Company’s properties consisted of 110 office and industrial properties (133 buildings) with approximately 27.0 million square feet located in 34 states throughout the mainland United States (Mainland Properties), and 11 properties (229 buildings, leasable land parcels and easements) located on the island of Oahu, Hawaii, with approximately 17.8 million rentable square feet that are primarily leased to industrial and commercial tenants (Hawaii Properties). As of December 31, 2016, the Company’s properties were leased to 312 different tenants.

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