Critical Contrast: Highlands REIT (HHDS) and Its Rivals

Highlands REIT (OTCMKTS:HHDS) is one of 283 public companies in the “Real estate investment trusts” industry, but how does it contrast to its peers? We will compare Highlands REIT to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.

Profitability

This table compares Highlands REIT and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Highlands REIT	-33.24%	-4.51%	-3.04%
Highlands REIT Competitors	-1.41%	-2.86%	1.12%

Analyst Ratings

This is a breakdown of current ratings and price targets for Highlands REIT and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highlands REIT	0	0	0	0	N/A
Highlands REIT Competitors	3674	13491	13791	336	2.34

As a group, “Real estate investment trusts” companies have a potential upside of 20.96%. Given Highlands REIT’s peers higher possible upside, analysts clearly believe Highlands REIT has less favorable growth aspects than its peers.

Risk & Volatility

Highlands REIT has a beta of 37.24, meaning that its stock price is 3,624% more volatile than the S&P 500. Comparatively, Highlands REIT’s peers have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Highlands REIT shares are owned by institutional investors. Comparatively, 69.4% of shares of all “Real estate investment trusts” companies are owned by institutional investors. 3.7% of Highlands REIT shares are owned by company insiders. Comparatively, 6.6% of shares of all “Real estate investment trusts” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Highlands REIT and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Highlands REIT	$30.98 million	-$10.30 million	-1.78
Highlands REIT Competitors	$989.75 million	$124.11 million	23.35

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

Summary

Highlands REIT peers beat Highlands REIT on 9 of the 10 factors compared.

Highlands REIT Company Profile

We are a self-advised and self-administered real estate investment trust (REIT) created to own and manage substantially all of the non-core investment properties previously owned and managed by our former parent, InvenTrust Properties Corp., a Maryland corporation (InvenTrust). On April 28, 2016, we were spun-off from InvenTrust through a pro rata distribution (the Distribution) by InvenTrust of 100% of the outstanding shares of our common stock to holders of InvenTrust's common stock. Prior to or concurrent with the separation, we and InvenTrust engaged in certain reorganization transactions that were designed to consolidate substantially all of InvenTrust's remaining non-core investment properties in Highlands.