Government Properties Income Trust (NASDAQ: GOV) and Brookfield Canada Office Properties (NYSE:BOXC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Risk and Volatility
Government Properties Income Trust has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Brookfield Canada Office Properties has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
58.2% of Government Properties Income Trust shares are held by institutional investors. Comparatively, 20.1% of Brookfield Canada Office Properties shares are held by institutional investors. 2.7% of Government Properties Income Trust shares are held by company 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.
This table compares Government Properties Income Trust and Brookfield Canada Office Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Government Properties Income Trust||15.30%||4.27%||1.66%|
|Brookfield Canada Office Properties||7.64%||1.26%||0.65%|
Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 9.3%. Brookfield Canada Office Properties pays an annual dividend of $0.97 per share and has a dividend yield of 3.9%. Government Properties Income Trust pays out 318.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Canada Office Properties pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and recommmendations for Government Properties Income Trust and Brookfield Canada Office Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Government Properties Income Trust||2||1||2||0||2.00|
|Brookfield Canada Office Properties||0||1||0||0||2.00|
Government Properties Income Trust presently has a consensus price target of $18.75, indicating a potential upside of 1.90%. Given Government Properties Income Trust’s higher possible upside, equities analysts plainly believe Government Properties Income Trust is more favorable than Brookfield Canada Office Properties.
Valuation and Earnings
This table compares Government Properties Income Trust and Brookfield Canada Office Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Government Properties Income Trust||$258.18 million||7.07||$57.84 million||$0.54||34.07|
|Brookfield Canada Office Properties||N/A||N/A||N/A||$1.16||21.52|
Government Properties Income Trust has higher revenue and earnings than Brookfield Canada Office Properties. Brookfield Canada Office Properties is trading at a lower price-to-earnings ratio than Government Properties Income Trust, indicating that it is currently the more affordable of the two stocks.
Government Properties Income Trust beats Brookfield Canada Office Properties on 11 of the 13 factors compared between the two stocks.
Government Properties Income Trust Company Profile
Government Properties Income Trust is a real estate investment trust (REIT). The Company operates through two segments: ownership of properties that are primarily leased to government tenants and its equity method investment in Select Income REIT (SIR). The Company’s properties are located in areas, including Alabama, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey and New Mexico. As of December 31, 2016, the Company owned 73 properties (95 buildings). As of December 31, 2016, the Company’s properties were located in 31 states and the District of Columbia, and contained approximately 11.4 million rentable square feet.
Brookfield Canada Office Properties Company Profile
Brookfield Canada Office Properties is a Canada-based real estate investment trust (REIT). The Company invests, develops and operates commercial office properties in Toronto, Ottawa, Calgary and Vancouver. The Company’s commercial-property portfolio consists of interests in approximately 25 properties totaling approximately 21.1 million square feet, including approximately 4.0 million square feet of parking and other. The Company’s development portfolio consists of the Brookfield Place Calgary East development site totaling approximately 1.4 million square feet in Calgary. The Company also invests in ongoing maintenance and capital improvement projects. The Company focuses on the markets, which include financial, government and energy sectors, which are primarily located in the cities of Toronto and Calgary. Its properties include 2 Queen Street East, Queen’s Quay Terminal, Exchange Tower, Bankers Hall Retail, Suncor Energy Centre, Jean Edmonds Tower and Royal Centre.
Receive News & Ratings for Government Properties Income Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Government Properties Income Trust and related companies with MarketBeat.com's FREE daily email newsletter.