Analyzing FrontView REIT (NYSE:FVR) & Highlands REIT (OTCMKTS:HHDS)

Highlands REIT (OTCMKTS:HHDS) and FrontView REIT (NYSE:FVR) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Insider and Institutional Ownership

0.0% of Highlands REIT shares are owned by institutional investors. 3.7% of Highlands REIT shares are owned by insiders. Comparatively, 4.3% of FrontView REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Highlands REIT and FrontView REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highlands REIT	$36.08 million	0.48	-$1.00 million	N/A	N/A
FrontView REIT	$66.68 million	4.23	-$22.21 million	($1.07)	-12.88

Highlands REIT has higher earnings, but lower revenue than FrontView REIT.

Profitability

This table compares Highlands REIT and FrontView REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Highlands REIT	-24.37%	-4.44%	-2.68%
FrontView REIT	-43.21%	-5.48%	-3.33%

Analyst Ratings

This is a summary of recent recommendations for Highlands REIT and FrontView REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highlands REIT	0	0	0	0	0.00
FrontView REIT	1	2	2	0	2.20

FrontView REIT has a consensus target price of $15.10, suggesting a potential upside of 9.58%. Given FrontView REIT’s stronger consensus rating and higher probable upside, analysts plainly believe FrontView REIT is more favorable than Highlands REIT.

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.

About FrontView REIT

FrontView REIT specializes in real estate investing.