Critical Review: Corporación Inmobiliaria Vesta (NYSE:VTMX) & Office Properties Income Trust (NASDAQ:OPI)

Office Properties Income Trust (NASDAQ:OPI) and Corporación Inmobiliaria Vesta (NYSE:VTMX) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Dividends

Office Properties Income Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.5%. Corporación Inmobiliaria Vesta pays an annual dividend of $0.60 per share and has a dividend yield of 1.9%. Office Properties Income Trust pays out -2.6% of its earnings in the form of a dividend. Corporación Inmobiliaria Vesta pays out 12.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Office Properties Income Trust and Corporación Inmobiliaria Vesta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Office Properties Income Trust	-13.72%	-5.76%	-1.85%
Corporación Inmobiliaria Vesta	182.61%	18.25%	11.46%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Office Properties Income Trust and Corporación Inmobiliaria Vesta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Office Properties Income Trust	1	0	1	0	2.00
Corporación Inmobiliaria Vesta	0	0	2	0	3.00

Office Properties Income Trust currently has a consensus target price of $4.30, indicating a potential upside of 65.38%. Corporación Inmobiliaria Vesta has a consensus target price of $41.00, indicating a potential upside of 26.43%. Given Office Properties Income Trust’s higher possible upside, analysts plainly believe Office Properties Income Trust is more favorable than Corporación Inmobiliaria Vesta.

Valuation and Earnings

This table compares Office Properties Income Trust and Corporación Inmobiliaria Vesta’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Office Properties Income Trust	$533.55 million	0.25	-$69.43 million	($1.54)	-1.69
Corporación Inmobiliaria Vesta	$225.12 million	124.45	$316.64 million	$5.02	6.46

Corporación Inmobiliaria Vesta has lower revenue, but higher earnings than Office Properties Income Trust. Office Properties Income Trust is trading at a lower price-to-earnings ratio than Corporación Inmobiliaria Vesta, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

64.4% of Office Properties Income Trust shares are held by institutional investors. Comparatively, 6.9% of Corporación Inmobiliaria Vesta shares are held by institutional investors. 2.0% 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 is poised for long-term growth.

Summary

Corporación Inmobiliaria Vesta beats Office Properties Income Trust on 10 of the 15 factors compared between the two stocks.

About Office Properties Income Trust

OPI is a national REIT focused on owning and leasing high quality office and mixed-use properties in select growth-oriented U.S. markets. As of December 31, 2023, approximately 64% of OPI's revenues were from investment grade rated tenants. OPI owned 152 properties as of December 31, 2023, with approximately 20.5 million square feet located in 30 states and Washington, D.C. In 2023, OPI was named as an Energy Star® Partner of the Year for the sixth consecutive year. OPI is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. OPI is headquartered in Newton, MA.

About Corporación Inmobiliaria Vesta

Corporación Inmobiliaria Vesta, S.A.B. de C.V., together with its subsidiaries, acquires, develops, manages, operates, and leases industrial buildings and distribution facilities in Mexico. The company was incorporated in 1998 and is headquartered in Mexico City, Mexico.