Comparing Government Properties Income Trust (GOV) and Front Yard Residential (RESI)

Front Yard Residential (NYSE: RESI) and Government Properties Income Trust (NASDAQ:GOV) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares Front Yard Residential and Government Properties Income Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Front Yard Residential $94.17 million 6.05 -$185.45 million N/A N/A
Government Properties Income Trust $316.53 million 4.42 $12.09 million $2.02 6.99

Government Properties Income Trust has higher revenue and earnings than Front Yard Residential.

Dividends

Front Yard Residential pays an annual dividend of $0.60 per share and has a dividend yield of 5.6%. Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 12.2%. 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. Front Yard Residential has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations for Front Yard Residential and Government Properties Income Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Front Yard Residential 0 0 2 0 3.00
Government Properties Income Trust 3 1 2 0 1.83

Front Yard Residential presently has a consensus price target of $16.00, indicating a potential upside of 50.23%. Government Properties Income Trust has a consensus price target of $17.17, indicating a potential upside of 21.66%. Given Front Yard Residential’s stronger consensus rating and higher probable upside, research analysts clearly believe Front Yard Residential is more favorable than Government Properties Income Trust.

Volatility and Risk

Front Yard Residential has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Government Properties Income Trust has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Front Yard Residential and Government Properties Income Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Front Yard Residential -156.26% -24.38% -8.52%
Government Properties Income Trust 3.16% 0.87% 0.32%

Institutional & Insider Ownership

71.9% of Front Yard Residential shares are owned by institutional investors. Comparatively, 57.9% of Government Properties Income Trust shares are owned by institutional investors. 0.9% of Front Yard Residential shares are owned by insiders. Comparatively, 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 company is poised for long-term growth.

Front Yard Residential Company Profile

Front Yard is an industry leader in providing quality, affordable rental homes to America's families. Our homes offer exceptional value in a variety of suburban communities which have easy accessibility to metropolitan areas. Front Yard's tenants enjoy the space and comfort that is unique to single-family housing, at reasonable prices. Our mission is to provide our tenants with houses they are proud to call home. Additional information is available at www.frontyardresidential.com.

Government Properties Income Trust Company Profile

GOV is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States that are majority leased to the U.S. Government and other 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.

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