Colony Capital (NYSE: CLNY) is one of 44 public companies in the “Residential REITs” industry, but how does it contrast to its rivals? We will compare Colony Capital to related companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Insider & Institutional Ownership

94.1% of Colony Capital shares are owned by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are owned by institutional investors. 17.7% of Colony Capital shares are owned by insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Colony Capital pays an annual dividend of $1.60 per share and has a dividend yield of 7.4%. Colony Capital pays out 179.8% 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, “Residential REITs” companies pay a dividend yield of 3.4% and pay out 119.1% of their earnings in the form of a dividend. Colony Capital has raised its dividend for 7 consecutive years.

Profitability

This table compares Colony Capital and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Colony Capital 31.43% 3.16% 2.88%
Colony Capital Competitors 18.54% 5.04% 1.96%

Valuation & Earnings

This table compares Colony Capital and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Colony Capital N/A N/A 24.18
Colony Capital Competitors $635.77 million $353.96 million 0.56

Colony Capital’s rivals have higher revenue and earnings than Colony Capital. Colony Capital is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Colony Capital and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colony Capital 0 1 2 0 2.67
Colony Capital Competitors 171 1111 1162 30 2.42

Colony Capital currently has a consensus target price of $27.50, suggesting a potential upside of 27.79%. As a group, “Residential REITs” companies have a potential upside of 7.11%. Given Colony Capital’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Colony Capital is more favorable than its rivals.

Volatility and Risk

Colony Capital has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Colony Capital’s rivals have a beta of 0.57, indicating that their average stock price is 43% less volatile than the S&P 500.

Summary

Colony Capital beats its rivals on 9 of the 13 factors compared.

About Colony Capital

Colony Capital, Inc., formerly Colony Financial, Inc., is a global real estate and investment management company. The Company operates through five segments: Real Estate Equity, including Light industrial real estate assets and operating platform; Single-family residential rentals through an investment in Colony Starwood Homes and Other real estate equity investments; Real Estate Debt, which includes loan originations and acquisitions, and Investment Management, which includes investment management of the Company-sponsored funds and other investment vehicles. Through its global investment management business, it has over $18.8 billion of assets under management. Its business objective is to provide risk-adjusted returns to its investors through a diversified portfolio of direct and indirect real estate-related equity and real estate debt investments, and fee bearing management contracts on investment funds that it manages.

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