TIER REIT (NYSE: TIER) is one of 17 publicly-traded companies in the “Office REITs” industry, but how does it contrast to its competitors? We will compare TIER REIT to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, analyst recommendations, valuation and risk.

Volatility & Risk

TIER REIT has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, TIER REIT’s competitors have a beta of 0.76, indicating that their average share price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares TIER REIT and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TIER REIT $242.82 million -$29.41 million 10.89
TIER REIT Competitors $741.50 million $133.14 million 58.20

TIER REIT’s competitors have higher revenue and earnings than TIER REIT. TIER REIT 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.

Profitability

This table compares TIER REIT and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIER REIT 40.68% 12.86% 5.60%
TIER REIT Competitors 10.08% 2.89% 1.27%

Insider & Institutional Ownership

57.6% of TIER REIT shares are held by institutional investors. Comparatively, 84.5% of shares of all “Office REITs” companies are held by institutional investors. 1.2% of TIER REIT shares are held by insiders. Comparatively, 2.6% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

TIER REIT pays an annual dividend of $0.72 per share and has a dividend yield of 3.6%. TIER REIT pays out 39.6% of its earnings in the form of a dividend. As a group, “Office REITs” companies pay a dividend yield of 3.1% and pay out 162.3% of their earnings in the form of a dividend. TIER REIT is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for TIER REIT and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIER REIT 0 0 2 0 3.00
TIER REIT Competitors 121 526 535 3 2.35

TIER REIT currently has a consensus target price of $20.50, indicating a potential upside of 3.43%. As a group, “Office REITs” companies have a potential upside of 9.20%. Given TIER REIT’s competitors higher possible upside, analysts clearly believe TIER REIT has less favorable growth aspects than its competitors.

Summary

TIER REIT beats its competitors on 8 of the 15 factors compared.

TIER REIT Company Profile

TIER REIT, Inc. is a real estate investment trust. The Company’s business consists of owning, acquiring, developing, operating, investing in, and disposing of real estate assets. The Company’s business is conducted through Tier Operating Partnership LP (Tier OP). As of December 31, 2016, the Company owned interests in 29 operating office properties, one non-operating property and one development property located in 13 markets throughout the United States. It owns properties located in metropolitan cities and suburban markets in the United States. The Company’s office properties include The Terrace Office Park, Domain 3, Domain 4, 5950 Sherry Lane, Burnett Plaza, Loop Central, One BriarLake Plaza, Three Eldridge Place, Eisenhower I, Forum Office Park, 500 E. Pratt, Woodcrest Corporate Center and 111 Woodcrest. The Company’s properties are located in Austin, Dallas, Houston, Charlotte, Nashville, Atlanta and Denver.

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