Financial Comparison: Howard Hughes (NYSE:HHC) and Its Competitors

Howard Hughes (NYSE: HHC) is one of 65 public companies in the “Real Estate Development & Operations” industry, but how does it compare to its competitors? We will compare Howard Hughes to related businesses based on the strength of its analyst recommendations, earnings, valuation, profitability, institutional ownership, risk and dividends.

Profitability

This table compares Howard Hughes and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Howard Hughes 5.83% 3.27% 1.40%
Howard Hughes Competitors -7.45% -1.57% 1.20%

Volatility and Risk

Howard Hughes has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Howard Hughes’ competitors have a beta of 0.87, suggesting that their average stock price is 13% less volatile than the S&P 500.

Valuation and Earnings

This table compares Howard Hughes and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Howard Hughes $1.04 billion $202.30 million 86.02
Howard Hughes Competitors $438.91 million $33.86 million 1,152.48

Howard Hughes has higher revenue and earnings than its competitors. Howard Hughes is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

85.3% of Howard Hughes shares are held by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are held by institutional investors. 20.7% of Howard Hughes shares are held by company insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Howard Hughes and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Howard Hughes 0 1 1 0 2.50
Howard Hughes Competitors 155 370 756 9 2.48

Howard Hughes currently has a consensus target price of $136.50, indicating a potential upside of 7.95%. As a group, “Real Estate Development & Operations” companies have a potential upside of 14.01%. Given Howard Hughes’ competitors higher probable upside, analysts plainly believe Howard Hughes has less favorable growth aspects than its competitors.

Summary

Howard Hughes beats its competitors on 8 of the 13 factors compared.

About Howard Hughes

The Howard Hughes Corporation is a developer of master planned communities and mixed use properties. The Company is engaged in the ownership, management and the redevelopment or repositioning of real estate assets, as well as other real estate opportunities in the form of entitled and unentitled land and other development rights, also called Strategic Developments. It operates through three segments: Master Planned Communities, Operating Assets and Strategic Developments. Its Master Planned Communities segment consists of the development and sale of residential land and the development of commercial land to hold, develop or sell. Its master planned communities include The Woodlands, Summerlin, Maryland, Bridgeland and The Woodlands Hills. As of December 31, 2016, its Operating Assets segment included 54 properties, investments and other assets. As of December 31, 2016, the Strategic Developments segment included 23 development projects.

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