Alexander & Baldwin (NYSE: ALEX) and Gazit-Globe (NYSE:GZT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Volatility and Risk
Alexander & Baldwin has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Gazit-Globe has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
Earnings and Valuation
This table compares Alexander & Baldwin and Gazit-Globe’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alexander & Baldwin||$387.50 million||3.78||-$10.20 million||$0.37||80.59|
|Gazit-Globe||$1.25 billion||1.64||$205.00 million||N/A||N/A|
Gazit-Globe has higher revenue and earnings than Alexander & Baldwin.
This table compares Alexander & Baldwin and Gazit-Globe’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alexander & Baldwin||4.15%||3.89%||2.18%|
Alexander & Baldwin pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. Gazit-Globe pays an annual dividend of $0.40 per share and has a dividend yield of 3.8%. Alexander & Baldwin pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander & Baldwin has raised its dividend for 3 consecutive years.
Insider and Institutional Ownership
77.9% of Alexander & Baldwin shares are held by institutional investors. Comparatively, 8.7% of Gazit-Globe shares are held by institutional investors. 7.6% of Alexander & Baldwin shares are held by 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.
This is a summary of recent recommendations and price targets for Alexander & Baldwin and Gazit-Globe, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alexander & Baldwin||0||0||1||0||3.00|
Alexander & Baldwin presently has a consensus target price of $50.00, indicating a potential upside of 67.67%. Gazit-Globe has a consensus target price of $11.00, indicating a potential upside of 3.68%. Given Alexander & Baldwin’s higher probable upside, analysts clearly believe Alexander & Baldwin is more favorable than Gazit-Globe.
Alexander & Baldwin beats Gazit-Globe on 9 of the 15 factors compared between the two stocks.
About Alexander & Baldwin
Alexander & Baldwin, Inc. (A&B) is a real estate company. The Company operates through three segments: Commercial Real Estate, Land Operations, and Materials and Construction. In addition to its 15 retail centers in Hawaii, the Company owned seven industrial assets, seven office properties and a portfolio of urban ground leases comprising 106 acres in Hawaii, as of December 31, 2016. On the United States mainland, the Company owned seven remaining commercial assets, as of December 31, 2016. The Commercial Real Estate segment owns, operates and manages retail, industrial and office properties in Hawaii and on the Mainland. The Land Operations segment manages the Company’s land and real estate-related assets and deploys these assets to their use. The Materials and Construction segment performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells basalt aggregate, and produces and sells asphaltic and ready-mix concrete.
Gazit-Globe Ltd. is a real estate company specialized in retail premises. The Company is engaged in the acquisition, development and management of properties. Its segments include Finland, Norway, Sweden, and Estonia and Denmark. It focuses on supermarket-anchored shopping centers in urban growth markets. It operates internationally through its publicly traded and privately held subsidiaries. It operates in more than 20 countries, and owns and manages approximately 430 properties with a gross leasable area of approximately 6.5 million square meters. The Company’s properties include Kista Galleria, Iso Omena, Potrero Center, Yorkville Village, Atrium Promenada, Serramonte Shopping Center, Galeria Dominikanska, Westbury Plaza, Northgate Centre, San Pelegrino Shopping Mall, G Tzameret, Kosice Optima Shopping Center, Coens Galerie, Parkway Mall, Rutherford Marketplace, Atrium Copernicus, Atrium Biala, Molo Shopping Center, Wentorf Shopping Center, Plaza Escuela and Mount Royal Village.
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