Easterly Government Properties (NYSE:DEA) vs. Summit Industrial Income REIT (OTCMKTS:SMMCF) Financial Survey

Summit Industrial Income REIT (OTCMKTS:SMMCF) and Easterly Government Properties (NYSE:DEA) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Summit Industrial Income REIT and Easterly Government Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Industrial Income REIT	N/A	N/A	N/A
Easterly Government Properties	6.25%	1.34%	0.62%

Valuation & Earnings

This table compares Summit Industrial Income REIT and Easterly Government Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50
Easterly Government Properties	$302.05 million	2.92	$18.80 million	$0.19	42.93

Easterly Government Properties has higher revenue and earnings than Summit Industrial Income REIT. Summit Industrial Income REIT is trading at a lower price-to-earnings ratio than Easterly Government Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Summit Industrial Income REIT and Easterly Government Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Industrial Income REIT	0	0	0	0	0.00
Easterly Government Properties	1	2	1	0	2.00

Easterly Government Properties has a consensus price target of $11.63, indicating a potential upside of 42.52%. Given Easterly Government Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Easterly Government Properties is more favorable than Summit Industrial Income REIT.

Insider & Institutional Ownership

0.1% of Summit Industrial Income REIT shares are owned by institutional investors. Comparatively, 86.5% of Easterly Government Properties shares are owned by institutional investors. 8.1% of Easterly Government Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Easterly Government Properties pays an annual dividend of $0.72 per share and has a dividend yield of 8.8%. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Easterly Government Properties pays out 378.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Easterly Government Properties beats Summit Industrial Income REIT on 11 of the 13 factors compared between the two stocks.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

About Easterly Government Properties

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).