Analyzing Office Properties Income Trust (NASDAQ:OPI) and Franklin Street Properties (NYSE:FSP)

Franklin Street Properties (NYSE:FSP) and Office Properties Income Trust (NASDAQ:OPI) are both small-cap real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Profitability

This table compares Franklin Street Properties and Office Properties Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Street Properties	-43.90%	-7.79%	-5.30%
Office Properties Income Trust	N/A	N/A	N/A

Valuation and Earnings

This table compares Franklin Street Properties and Office Properties Income Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Street Properties	$105.92 million	0.46	-$52.72 million	($0.40)	-1.17
Office Properties Income Trust	$466.97 million	3.01	N/A	N/A	N/A

Office Properties Income Trust has higher revenue and earnings than Franklin Street Properties.

Analyst Recommendations

This is a summary of current ratings and price targets for Franklin Street Properties and Office Properties Income Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Street Properties	0	0	0	0	0.00
Office Properties Income Trust	1	0	0	1	2.50

Office Properties Income Trust has a consensus price target of $27.00, suggesting a potential upside of 42.11%. Given Office Properties Income Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Office Properties Income Trust is more favorable than Franklin Street Properties.

Institutional & Insider Ownership

61.4% of Franklin Street Properties shares are held by institutional investors. Comparatively, 64.4% of Office Properties Income Trust shares are held by institutional investors. 4.9% of Franklin Street Properties shares are held by company insiders. Comparatively, 1.8% of Office Properties Income Trust shares are held 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

Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 8.6%. Office Properties Income Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Franklin Street Properties pays out -10.0% of its earnings in the form of a dividend.

Summary

Office Properties Income Trust beats Franklin Street Properties on 9 of the 12 factors compared between the two stocks.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.