Paramount Group (PGRE) vs. Its Peers Critical Contrast
Paramount Group (NYSE: PGRE) is one of 20 public companies in the “Office REITs” industry, but how does it contrast to its competitors? We will compare Paramount Group to related companies based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, risk and institutional ownership.
Risk and Volatility
Paramount Group has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Paramount Group’s competitors have a beta of 0.91, indicating that their average stock price is 9% less volatile than the S&P 500.
This table compares Paramount Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Paramount Group Competitors||5.41%||1.37%||0.69%|
Earnings & Valuation
This table compares Paramount Group and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Paramount Group||$708.66 million||$384.89 million||39.03|
|Paramount Group Competitors||$672.08 million||$356.91 million||59.14|
Paramount Group has higher revenue and earnings than its competitors. Paramount Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a summary of current ratings for Paramount Group and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Paramount Group Competitors||173||640||614||10||2.32|
Paramount Group presently has a consensus target price of $15.50, indicating a potential downside of 3.13%. As a group, “Office REITs” companies have a potential upside of 10.01%. Given Paramount Group’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Paramount Group has less favorable growth aspects than its competitors.
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.
Insider & Institutional Ownership
62.8% of Paramount Group shares are owned by institutional investors. Comparatively, 85.6% of shares of all “Office REITs” companies are owned by institutional investors. 5.9% of Paramount Group shares are owned by company insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Paramount Group competitors 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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