Critical Survey: TIER REIT (TIER) and Its Competitors

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

Analyst Ratings

This is a summary of recent recommendations for TIER REIT and its rivals, 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 121 528 543 3 2.36

TIER REIT currently has a consensus target price of $20.50, indicating a potential upside of 4.75%. As a group, “Office REITs” companies have a potential upside of 10.44%. Given TIER REIT’s rivals higher probable upside, analysts plainly believe TIER REIT has less favorable growth aspects than its rivals.

Profitability

This table compares TIER REIT and its rivals’ 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 10.24% 3.57% 1.50%

Insider & Institutional Ownership

57.5% 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, 3.0% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares TIER REIT and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TIER REIT $242.82 million -$29.41 million 10.75
TIER REIT Competitors $741.50 million $133.14 million 68.92

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

Volatility & Risk

TIER REIT has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, TIER REIT’s rivals have a beta of 0.89, suggesting that their average share price is 11% less volatile than the S&P 500.

Dividends

TIER REIT pays an annual dividend of $0.72 per share and has a dividend yield of 3.7%. 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 3.3% and pay out 154.7% of their earnings in the form of a dividend. TIER REIT is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

TIER REIT beats its rivals 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.

Receive News & Ratings for TIER REIT Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TIER REIT Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply