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Head to Head Survey: The RMR Group (NASDAQ:RMR) and Grainger (OTC:GRGTF)

Head to Head Survey: The RMR Group (NASDAQ:RMR) and Grainger (OTC:GRGTF)


The RMR Group (NASDAQ:RMR – Get Rating) and Grainger (OTC:GRGTF – Get Rating) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for The RMR Group and Grainger, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The RMR Group 0 1 1 0 2.50
Grainger 0 1 1 0 2.50

The RMR Group presently has a consensus price target of $37.00, indicating a potential upside of 58.12%. Grainger has a consensus price target of $270.00, indicating a potential upside of 9,210.34%. Given Grainger’s higher possible upside, analysts plainly believe Grainger is more favorable than The RMR Group.

Profitability

This table compares The RMR Group and Grainger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The RMR Group 4.86% 9.66% 6.46%
Grainger N/A N/A N/A

Earnings & Valuation

This table compares The RMR Group and Grainger’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The RMR Group $912.44 million 0.81 $34.00 million $2.67 8.76
Grainger N/A N/A N/A $0.18 16.20

The RMR Group has higher revenue and earnings than Grainger. The RMR Group is trading at a lower price-to-earnings ratio than Grainger, indicating that it is currently the more affordable of the two stocks.

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Dividends

The RMR Group pays an annual dividend of $1.60 per share and has a dividend yield of 6.8%. Grainger pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. The RMR Group pays out 59.9% of its earnings in the form of a dividend. Grainger pays out 11.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. The RMR Group has increased its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

40.8% of The RMR Group shares are owned by institutional investors. 55.0% of The RMR Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

The RMR Group beats Grainger on 9 of the 12 factors compared between the two stocks.

About The RMR Group

(Get Rating)

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. The company offers management services to its four publicly traded real estate investment trusts and three real estate operating companies. It also provides investment advisory and administrative services. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in September 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

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About Grainger

(Get Rating)

Grainger plc, together with its subsidiaries, provides private rental homes in the United Kingdom. It also provides property and asset management services. Grainger plc was formerly known as Grainger Trust Plc and changed the name to Grainger Plc in March 2007. The company was incorporated in 1912 and is headquartered in Newcastle upon Tyne, the United Kingdom.



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  • June 25, 2023