Critical Review: Brookfield Property Partners (BPY) & Five Point (FPH)

Brookfield Property Partners (NASDAQ: BPY) and Five Point (NYSE:FPH) are both mid-cap financials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Dividends

Brookfield Property Partners pays an annual dividend of $1.18 per share and has a dividend yield of 5.5%. Five Point does not pay a dividend. Brookfield Property Partners pays out 513.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

61.7% of Brookfield Property Partners shares are owned by institutional investors. Comparatively, 33.5% of Five Point shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Brookfield Property Partners and Five Point, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Property Partners 0 2 2 0 2.50
Five Point 0 2 4 0 2.67

Brookfield Property Partners presently has a consensus price target of $25.17, indicating a potential upside of 17.82%. Five Point has a consensus price target of $19.70, indicating a potential upside of 32.84%. Given Five Point’s stronger consensus rating and higher possible upside, analysts clearly believe Five Point is more favorable than Brookfield Property Partners.

Profitability

This table compares Brookfield Property Partners and Five Point’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Property Partners 11.89% 1.66% 0.70%
Five Point -18.83% -2.30% -1.68%

Valuation & Earnings

This table compares Brookfield Property Partners and Five Point’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Property Partners $5.19 billion 1.05 $660.00 million $0.23 92.87
Five Point $39.36 million 54.17 -$33.26 million N/A N/A

Brookfield Property Partners has higher revenue and earnings than Five Point.

Summary

Brookfield Property Partners beats Five Point on 7 of the 12 factors compared between the two stocks.

Brookfield Property Partners Company Profile

Brookfield Property Partners L.P. is a diversified global real estate company. The Company owns, operates and develops a portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage and student housing assets. Its partnership is Brookfield Asset Management Inc.’s public commercial property entity and the primary vehicle through which it invests in real estate on a global basis. It operates through four segments: Core Office, Core Retail, Opportunistic and Corporate. As of December 31, 2016, its Core Office segment consisted of interests in 142 office properties totaling 99 million square feet. As of December 31, 2016, its Core Retail segment consisted of interests in 127 regional malls and urban retail properties. As of December 31, 2016, its Opportunistic segment consisted of 107 office properties comprising approximately 29 million square feet of office space in the United States, United Kingdom, Brazil and Asia.

Five Point Company Profile

Five Point Holdings, LLC, formerly Newhall Holding Company, LLC, is the owner and developer of mixed-use, planned communities in coastal California. The Company is primarily engaged in the business of planning and developing its three mixed-use, planned communities. It operates in three segments: Newhall, San Francisco and Great Park. Its three mixed-use, planned communities are: Newhall Ranch in Los Angeles County; The San Francisco Shipyard and Candlestick Point in the City of San Francisco; and Great Park Neighborhoods in Orange County. Newhall Ranch consists of approximately 15,000 acres in northern Los Angeles County. Newhall Ranch is designed to include approximately 21,500 home sites and approximately 11.5 million square feet of commercial space. The San Francisco Shipyard and Candlestick Point consists of approximately 800 acres of bay front property in the city of San Francisco. Great Park Neighborhoods consists of approximately 2,100 acres in Orange County, California.

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