Drive Shack (NYSE: DS) is one of 16 public companies in the “Specialized REITs” industry, but how does it compare to its peers? We will compare Drive Shack to related companies based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Insider and Institutional Ownership

41.8% of Drive Shack shares are held by institutional investors. Comparatively, 64.6% of shares of all “Specialized REITs” companies are held by institutional investors. 7.2% of Drive Shack shares are held by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Drive Shack and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Drive Shack 0 1 0 0 2.00
Drive Shack Competitors 85 320 599 24 2.55

Drive Shack presently has a consensus target price of $3.75, indicating a potential upside of 17.55%. As a group, “Specialized REITs” companies have a potential upside of 13.63%. Given Drive Shack’s higher possible upside, equities research analysts clearly believe Drive Shack is more favorable than its peers.

Volatility and Risk

Drive Shack has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Drive Shack’s peers have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.

Profitability

This table compares Drive Shack and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Drive Shack -7.05% 25.92% 3.08%
Drive Shack Competitors 34.60% 8.74% 3.15%

Earnings and Valuation

This table compares Drive Shack and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Drive Shack $292.74 million $8.22 million -9.11
Drive Shack Competitors $1.00 billion $531.02 million 28.21

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

Dividends

Drive Shack pays an annual dividend of $0.24 per share and has a dividend yield of 7.5%. Drive Shack pays out -68.6% of its earnings in the form of a dividend. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 169.6% of their earnings in the form of a dividend. Drive Shack is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Drive Shack peers beat Drive Shack on 9 of the 15 factors compared.

About Drive Shack

Drive Shack Inc., formerly Newcastle Investment Corp., is a leisure company. The Company is an owner and operator of golf-related leisure and entertainment businesses. The Company’s portfolio consists of Drive Shack, which is engaged in developing nationwide network of golf entertainment venues; American Golf Corporation, which is a golf course company, and real estate-related assets. American Golf Corporation operates approximately 90 private, resort and public golf courses throughout the United States. It has a range of public and private golf courses in California, New York, and Georgia. It operates multiple facilities that provide golf, tennis, swimming and spa facilities, among others. Its online Pro Shop offers a range of golf gifts, such as personalized golf balls, golf luggage and accessories. Its public golf courses equipped with practice areas, golf shops, driving ranges, and food and beverage options.

Receive News & Ratings for Drive Shack Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Drive Shack Inc. and related companies with MarketBeat.com's FREE daily email newsletter.