Financial Analysis: Boardwalk Real Estate Investment Trust (BOWFF) and Its Competitors

Boardwalk Real Estate Investment Trust (OTCMKTS:BOWFF) is one of 57 public companies in the “Residential REITs” industry, but how does it weigh in compared to its competitors? We will compare Boardwalk Real Estate Investment Trust to related businesses based on the strength of its dividends, analyst recommendations, valuation, earnings, institutional ownership, profitability and risk.

Profitability

This table compares Boardwalk Real Estate Investment Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boardwalk Real Estate Investment Trust	-7.44%	-1.00%	-0.54%
Boardwalk Real Estate Investment Trust Competitors	9.71%	2.37%	2.33%

Analyst Recommendations

This is a breakdown of recent recommendations for Boardwalk Real Estate Investment Trust and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boardwalk Real Estate Investment Trust	0	1	0	0	2.00
Boardwalk Real Estate Investment Trust Competitors	619	3264	3378	147	2.41

As a group, “Residential REITs” companies have a potential upside of 11.65%. Given Boardwalk Real Estate Investment Trust’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Boardwalk Real Estate Investment Trust has less favorable growth aspects than its competitors.

Dividends

Boardwalk Real Estate Investment Trust pays an annual dividend of $1.26 per share and has a dividend yield of 2.8%. Boardwalk Real Estate Investment Trust pays out -170.3% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 4.7% and pay out 199.8% of their earnings in the form of a dividend.

Volatility & Risk

Boardwalk Real Estate Investment Trust has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Boardwalk Real Estate Investment Trust’s competitors have a beta of 0.68, suggesting that their average stock price is 32% less volatile than the S&P 500.

Valuation & Earnings

This table compares Boardwalk Real Estate Investment Trust and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Boardwalk Real Estate Investment Trust	$457.06 million	$140.90 million	-60.77
Boardwalk Real Estate Investment Trust Competitors	$776.18 million	$238.42 million	40.65

Boardwalk Real Estate Investment Trust’s competitors have higher revenue and earnings than Boardwalk Real Estate Investment Trust. Boardwalk Real Estate Investment Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

55.6% of shares of all “Residential REITs” companies are owned by institutional investors. 19.0% of Boardwalk Real Estate Investment Trust shares are owned by company insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Boardwalk Real Estate Investment Trust competitors beat Boardwalk Real Estate Investment Trust on 12 of the 15 factors compared.

Boardwalk Real Estate Investment Trust Company Profile

Boardwalk REIT strives to be Canada’s friendliest community provider and is a leading owner/operator of multi-family rental communities. Providing homes in more than 200 communities, with over 34,000 residential suites totaling over 29 million net rentable square feet, Boardwalk has a proven long-term track record of building better communities, where love always lives. Our three-tiered and distinct brands: Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle, cater to a large diverse demographic and has evolved to capture the life cycle of all Resident Members. Boardwalk’s disciplined approach to capital allocation, acquisition, development, purposeful re-positioning, and management of apartment communities allows the Trust to provide its brand of community across Canada creating exceptional Resident Member experiences. Differentiated by its peak performance culture, Boardwalk is committed to delivering exceptional service, product quality and experience to our Resident Members who reward us with high retention and market leading operating results, which in turn, lead to higher free cash flow and investment returns, stable monthly distributions, and value creation for all our stakeholders. Boardwalk REIT’s Trust Units are listed on the Toronto Stock Exchange, trading under the symbol BEI.UN.