Leju (NASDAQ: GOV) and Government Properties Income Trust (NASDAQ:GOV) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.
Insider and Institutional Ownership
1.7% of Leju shares are held by institutional investors. Comparatively, 58.2% of Government Properties Income Trust shares are held by institutional investors. 1.3% of Government Properties Income Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Leju has a beta of 3.27, suggesting that its share price is 227% more volatile than the S&P 500. Comparatively, Government Properties Income Trust has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
Valuation & Earnings
This table compares Leju and Government Properties Income Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Leju||$362.53 million||0.85||-$160.90 million||($1.19)||-1.90|
|Government Properties Income Trust||$316.53 million||5.29||$12.09 million||$2.02||8.36|
Government Properties Income Trust has lower revenue, but higher earnings than Leju. Leju is trading at a lower price-to-earnings ratio than Government Properties Income Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Leju and Government Properties Income Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Government Properties Income Trust||7.42%||2.16%||0.79%|
Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 10.2%. Leju does not pay a dividend. Government Properties Income Trust pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current recommendations and price targets for Leju and Government Properties Income Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Government Properties Income Trust||4||1||2||0||1.71|
Leju currently has a consensus price target of $4.00, suggesting a potential upside of 76.99%. Government Properties Income Trust has a consensus price target of $16.00, suggesting a potential downside of 5.27%. Given Leju’s stronger consensus rating and higher probable upside, equities analysts clearly believe Leju is more favorable than Government Properties Income Trust.
Government Properties Income Trust beats Leju on 10 of the 15 factors compared between the two stocks.
Leju Company Profile
Leju Holdings Limited, through its subsidiaries, provides online to offline (O2O) real estate services in the People's Republic of China. The company offers real estate e-commerce, online advertising, and online listing services through its online platform, which comprises Websites covering 377 cities and various mobile applications for the real estate and home furnishing industries. It also operates various real estate and home furnishing Websites of SINA Corporation (SINA); and official accounts on Weixin, a social communication platform and Weibo, a microblog. The company's O2O services for new residential properties include selling discount coupons; and facilitating online property viewing, physical property visits, marketing events, and pre-sale customer support, as well as home furnishing business transactions on its platform. It also sells advertising primarily on the SINA new residential properties and home furnishing Websites; and acts as an advertising agent for the SINA home page and non-real estate Websites with respect to advertising sold to real estate and home furnishing advertisers. In addition, the company offers fee-based online property listing services to real estate agents; and services to individual property sellers. Leju Holdings Limited was incorporated in 2013 and is headquartered in Beijing, the People's Republic of China.
Government Properties Income Trust Company Profile
GOV is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States that are majority leased to government tenants and office properties in the metropolitan Washington, D.C. market area that are leased to government and private sector tenants. GOV is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.
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