Critical Survey: Intergroup (INTG) vs. Its Peers

Intergroup (NASDAQ:INTG) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its peers? We will compare Intergroup to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of current ratings for Intergroup and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intergroup	0	1	0	0	2.00
Intergroup Competitors	3788	17180	25454	901	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 60.50%. Given Intergroup’s peers stronger consensus rating and higher possible upside, analysts plainly believe Intergroup has less favorable growth aspects than its peers.

Insider and Institutional Ownership

3.4% of Intergroup shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 73.8% of Intergroup shares are owned by insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Intergroup has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, Intergroup’s peers have a beta of 1.63, suggesting that their average share price is 63% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intergroup	2.22%	-1.43%	1.60%
Intergroup Competitors	2.33%	-40.13%	2.12%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Intergroup	$73.95 million	$1.64 million	56.45
Intergroup Competitors	$3.43 billion	$247.14 million	-148.55

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

Summary

Intergroup peers beat Intergroup on 10 of the 13 factors compared.

About Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.