Reviewing Ferrovial (NASDAQ:FER) and The RMR Group (NASDAQ:RMR)

The RMR Group (NASDAQ:RMR) and Ferrovial (NASDAQ:FER) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Profitability

This table compares The RMR Group and Ferrovial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The RMR Group	3.23%	3.44%	2.05%
Ferrovial	N/A	N/A	N/A

Valuation & Earnings

This table compares The RMR Group and Ferrovial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The RMR Group	$700.28 million	0.87	$17.60 million	$1.21	15.74
Ferrovial	$10.89 billion	4.39	$1.00 billion	N/A	N/A

Ferrovial has higher revenue and earnings than The RMR Group.

Risk and Volatility

The RMR Group has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Ferrovial has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Institutional and Insider Ownership

42.3% of The RMR Group shares are owned by institutional investors. Comparatively, 22.3% of Ferrovial shares are owned by institutional investors. 54.7% of The RMR Group shares are owned by company 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.

Dividends

The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 9.5%. Ferrovial pays an annual dividend of $1.29 per share and has a dividend yield of 2.0%. The RMR Group pays out 148.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has increased its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for The RMR Group and Ferrovial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The RMR Group	0	2	2	0	2.50
Ferrovial	0	5	2	0	2.29

The RMR Group currently has a consensus target price of $19.00, indicating a potential downside of 0.21%. Ferrovial has a consensus target price of $70.47, indicating a potential upside of 8.24%. Given Ferrovial’s higher possible upside, analysts clearly believe Ferrovial is more favorable than The RMR Group.

Summary

The RMR Group beats Ferrovial on 9 of the 14 factors compared between the two stocks.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

About Ferrovial

Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.