Analyzing Five Point (NYSE:FPH) and Office Properties Income Trust (NYSE:OPI)

Five Point (NYSE:FPH) and Office Properties Income Trust (NASDAQ:OPI) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

33.6% of Five Point shares are held by institutional investors. Comparatively, 67.2% of Office Properties Income Trust shares are held by institutional investors. 4.6% of Five Point shares are held by insiders. Comparatively, 1.7% of Office Properties Income Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Five Point and Office Properties Income Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five Point 0 2 2 0 2.50
Office Properties Income Trust 1 1 0 0 1.50

Five Point currently has a consensus target price of $9.75, indicating a potential upside of 37.91%. Office Properties Income Trust has a consensus target price of $26.00, indicating a potential upside of 8.42%. Given Five Point’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Five Point is more favorable than Office Properties Income Trust.

Valuation & Earnings

This table compares Five Point and Office Properties Income Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Five Point $48.99 million 21.36 -$34.71 million ($0.36) -19.64
Office Properties Income Trust $426.56 million 2.70 -$21.88 million $7.95 3.02

Office Properties Income Trust has higher revenue and earnings than Five Point. Five Point is trading at a lower price-to-earnings ratio than Office Properties Income Trust, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Five Point has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Office Properties Income Trust has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Profitability

This table compares Five Point and Office Properties Income Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Five Point -12.05% -2.35% -1.51%
Office Properties Income Trust 1.13% 0.95% 0.34%

Dividends

Office Properties Income Trust pays an annual dividend of $2.20 per share and has a dividend yield of 9.2%. Five Point does not pay a dividend. Office Properties Income Trust pays out 27.7% of its earnings in the form of a dividend.

Summary

Office Properties Income Trust beats Five Point on 10 of the 16 factors compared between the two stocks.

Five Point Company Profile

Five Point Holdings, LLC, through its subsidiary, Five Point Operating Company, LP, plans, develops, and owns mixed-use communities in California, the United States. The company operates through four segments: Newhall, San Francisco, Great Park, and Commercial. It sells residential and commercial land sites to homebuilders, commercial developers, and commercial buyers; operates properties; and provides development management services. The company was formerly known as Newhall Holding Company, LLC and changed its name to Five Point Holdings, LLC in May 2016. Five Point Holdings, LLC was founded in 2009 and is based in Irvine, California.

Office Properties Income Trust Company Profile

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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