Comparing Gazit Globe (GZT) and Alexander & Baldwin (NYSE:ALEX)

Alexander & Baldwin (NYSE: ALEX) and Gazit Globe (NYSE:GZT) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Dividends

Alexander & Baldwin pays an annual dividend of $0.21 per share and has a dividend yield of 0.8%. Gazit Globe pays an annual dividend of $0.40 per share and has a dividend yield of 3.7%. Alexander & Baldwin pays out 18.1% of its earnings in the form of a dividend. Gazit Globe pays out 8.7% 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. Alexander & Baldwin has raised its dividend for 4 consecutive years and Gazit Globe has raised its dividend for 2 consecutive years. Gazit Globe is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Alexander & Baldwin and Gazit Globe’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alexander & Baldwin $387.50 million 3.55 -$10.20 million $1.16 24.10
Gazit Globe $1.25 billion 1.68 $205.00 million $4.59 2.36

Gazit Globe has higher revenue and earnings than Alexander & Baldwin. Gazit Globe is trading at a lower price-to-earnings ratio than Alexander & Baldwin, indicating that it is currently the more affordable of the two stocks.

Profitability

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%
Gazit Globe -45.72% 4.16% 1.53%

Volatility & 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 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Alexander & Baldwin and Gazit Globe, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexander & Baldwin 0 0 1 0 3.00
Gazit Globe 0 0 3 0 3.00

Alexander & Baldwin presently has a consensus target price of $50.00, suggesting a potential upside of 78.83%. Gazit Globe has a consensus target price of $11.00, suggesting a potential upside of 1.57%. Given Alexander & Baldwin’s higher possible upside, equities analysts plainly believe Alexander & Baldwin is more favorable than Gazit Globe.

Institutional and Insider Ownership

78.2% 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Alexander & Baldwin beats Gazit Globe on 9 of the 16 factors compared between the two stocks.

Alexander & Baldwin Company Profile

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 Company Profile

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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