Contrasting Highlands REIT (HHDS) & The Competition

Highlands REIT (OTCMKTS:HHDS) is one of 282 public companies in the “Real estate investment trusts” industry, but how does it weigh in compared to its peers? We will compare Highlands REIT to related companies based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, dividends and institutional ownership.

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	-1.31%	-2.80%	1.12%

Volatility and Risk

Highlands REIT has a beta of 26.82, meaning that its stock price is 2,582% more volatile than the S&P 500. Comparatively, Highlands REIT’s peers have a beta of 1.24, meaning that their average stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Highlands REIT and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highlands REIT	0	0	0	0	N/A
Highlands REIT Competitors	3575	13243	13603	333	2.35

As a group, “Real estate investment trusts” companies have a potential upside of 21.66%. Given Highlands REIT’s peers higher probable upside, analysts plainly believe Highlands REIT has less favorable growth aspects than its peers.

Institutional & Insider Ownership

0.0% of Highlands REIT shares are owned by institutional investors. Comparatively, 68.9% 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, 6.4% of shares of all “Real estate investment trusts” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Highlands REIT	$30.98 million	-$10.30 million	-9.99
Highlands REIT Competitors	$994.51 million	$124.31 million	22.98

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.

About Highlands REIT

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.