Head-To-Head Comparison: Front Yard Residential (NYSE:RESI) vs. Office Properties Income Trust (NYSE:OPI)

Front Yard Residential (NYSE:RESI) and Office Properties Income Trust (NASDAQ:OPI) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Earnings and Valuation

This table compares Front Yard Residential and Office Properties Income Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Front Yard Residential $183.01 million 3.33 -$130.84 million N/A N/A
Office Properties Income Trust $426.56 million 3.04 -$21.88 million $7.95 3.39

Office Properties Income Trust has higher revenue and earnings than Front Yard Residential.

Analyst Ratings

This is a summary of recent ratings and target prices for Front Yard Residential and Office Properties Income Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Front Yard Residential 0 0 3 0 3.00
Office Properties Income Trust 0 3 0 0 2.00

Front Yard Residential presently has a consensus target price of $14.00, suggesting a potential upside of 23.13%. Office Properties Income Trust has a consensus target price of $26.33, suggesting a potential downside of 2.32%. Given Front Yard Residential’s stronger consensus rating and higher possible upside, research analysts clearly believe Front Yard Residential is more favorable than Office Properties Income Trust.

Insider and Institutional Ownership

74.0% of Front Yard Residential shares are owned by institutional investors. Comparatively, 66.7% of Office Properties Income Trust shares are owned by institutional investors. 0.9% of Front Yard Residential shares are owned by insiders. Comparatively, 1.7% of Office Properties Income Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Front Yard Residential has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Office Properties Income Trust has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Profitability

This table compares Front Yard Residential and Office Properties Income Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Front Yard Residential -62.28% -24.20% -5.67%
Office Properties Income Trust -15.86% -4.92% -1.73%

Dividends

Front Yard Residential pays an annual dividend of $0.60 per share and has a dividend yield of 5.3%. Office Properties Income Trust pays an annual dividend of $2.20 per share and has a dividend yield of 8.2%. Office Properties Income Trust pays out 27.7% of its earnings in the form of a dividend.

Summary

Office Properties Income Trust beats Front Yard Residential on 8 of the 14 factors compared between the two stocks.

About Front Yard Residential

Front Yard is an industry leader in providing quality, affordable rental homes to America's families. Our homes offer exceptional value in a variety of suburban communities that have easy accessibility to metropolitan areas. Front Yard's tenants enjoy the space and comfort that is unique to single-family housing at reasonable prices. Our mission is to provide our tenants with houses they are proud to call home.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust, or REIT, which owns buildings primarily leased to single tenants and those with high credit quality characteristics like government entities. In December 2018, our predecessor company Government Properties Income Trust, or GOV, merged with Select Income REIT, or SIR, and the combined company was renamed Office Properties Income Trust, or OPI. Combining the two companies creates a national office REIT with increased scale, enhanced tenant and geographic diversification, a well-laddered lease expiration schedule, a broader investment strategy, and a company with one of the highest percentages of rent paid by investment grade rated tenants in the office sector.

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