FRP (FRPH) vs. Government Properties Income Trust (GOV) Critical Survey

FRP (NASDAQ: FRPH) and Government Properties Income Trust (NASDAQ:GOV) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Institutional & Insider Ownership

47.7% of FRP shares are owned by institutional investors. Comparatively, 58.0% of Government Properties Income Trust shares are owned by institutional investors. 17.3% of FRP shares are owned by insiders. Comparatively, 1.3% of Government Properties Income Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for FRP and Government Properties Income Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FRP 0 0 0 0 N/A
Government Properties Income Trust 3 1 2 0 1.83

Government Properties Income Trust has a consensus price target of $16.40, indicating a potential upside of 2.12%. Given Government Properties Income Trust’s higher probable upside, analysts plainly believe Government Properties Income Trust is more favorable than FRP.

Dividends

Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 10.7%. FRP does not pay a dividend. Government Properties Income Trust pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares FRP and Government Properties Income Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FRP 375.17% -4.40% -2.75%
Government Properties Income Trust 7.42% 2.16% 0.79%

Volatility & Risk

FRP has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Government Properties Income Trust has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Valuation & Earnings

This table compares FRP and Government Properties Income Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FRP $43.19 million 15.03 $41.75 million N/A N/A
Government Properties Income Trust $316.53 million 5.03 $12.09 million $2.02 7.95

FRP has higher earnings, but lower revenue than Government Properties Income Trust.

Summary

Government Properties Income Trust beats FRP on 8 of the 13 factors compared between the two stocks.

FRP Company Profile

FRP Holdings, Inc., through its subsidiaries, engages in various real estate businesses in the United States. The company operates through four segments: Asset Management, Mining Royalty Lands, Land Development and Construction, and RiverFront on the Anacostia. The Asset Management segment owns, leases, and manages warehouses and office buildings primarily located in the Baltimore, northern Virginia, and Washington, DC market areas. This segment primarily serves local and regional tenants. The Mining Royalty Lands segment owns various properties comprising approximately 15,000 acres under lease for mining rents or royalties primarily in Florida, Georgia, and Virginia. The Land Development and Construction segment owns and monitors the use of parcels of land that are in various stages of development. The RiverFront on the Anacostia segment owns, leases, and manages a 305 unit residential apartment building with approximately 18,000 square feet of first floor retail space. FRP Holdings, Inc. was founded in 1986 and is based in Jacksonville, Florida.

Government Properties Income Trust Company Profile

GOV is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States that are majority leased to government tenants and office properties in the metropolitan Washington, D.C. market area that are leased to government and private sector tenants. GOV is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

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