Paramount Group (NYSE: PGRE) is one of 20 public companies in the “Office REITs” industry, but how does it weigh in compared to its rivals? We will compare Paramount Group to related businesses based on the strength of its risk, earnings, dividends, institutional ownership, analyst recommendations, profitability and valuation.

Risk & Volatility

Paramount Group has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Paramount Group’s rivals have a beta of 0.91, meaning that their average share price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares Paramount Group and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Paramount Group $708.66 million $384.89 million 39.05
Paramount Group Competitors $648.15 million $343.67 million 59.45

Paramount Group has higher revenue and earnings than its rivals. Paramount Group 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Paramount Group 13.88% 1.99% 1.12%
Paramount Group Competitors 5.41% 1.37% 0.69%

Insider and Institutional Ownership

62.6% of Paramount Group shares are held by institutional investors. Comparatively, 85.9% of shares of all “Office REITs” companies are held by institutional investors. 5.9% of Paramount Group shares are held by insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Paramount Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Group 2 1 1 0 1.75
Paramount Group Competitors 173 634 610 10 2.32

Paramount Group currently has a consensus target price of $15.50, indicating a potential downside of 3.19%. As a group, “Office REITs” companies have a potential upside of 10.21%. Given Paramount Group’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Paramount Group has less favorable growth aspects than its rivals.

Dividends

Paramount Group pays an annual dividend of $0.38 per share and has a dividend yield of 2.4%. Paramount Group pays out 92.7% 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, “Office REITs” companies pay a dividend yield of 3.4% and pay out 249.2% of their earnings in the form of a dividend.

Summary

Paramount Group rivals beat Paramount Group on 8 of the 15 factors compared.

Paramount Group Company Profile

Paramount Group, Inc. is a fully-integrated real estate investment trust (REIT) focused on owning, operating, managing, acquiring and redeveloping Class A office properties in select central business district submarkets of New York City, Washington, District of Columbia (D.C.) and San Francisco. The Company conducts its business through, and substantially all its interests in properties and investments are held by, Paramount Group Operating Partnership LP (the Operating Partnership). The Company’s segments include New York, Washington, D.C. and San Francisco. As of December 31, 2016, the Company’s portfolio consisted of 13 Class A office properties aggregating approximately 10.8 million square feet that was 93.3% leased and 90.9% occupied. The Company also has an investment management business, where it serves as the general partner and property manager of certain private equity real estate funds for institutional investors and high-net-worth individuals.

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