Critical Analysis: Howard Hughes (HHC) versus The Competition

Howard Hughes (NYSE: HHC) is one of 66 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it contrast to its rivals? We will compare Howard Hughes to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, risk, earnings and dividends.

Risk and Volatility

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’ rivals have a beta of 0.58, suggesting that their average stock price is 42% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Howard Hughes $1.04 billion $202.30 million 86.44
Howard Hughes Competitors $438.91 million $33.86 million 1,344.63

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

Profitability

This table compares Howard Hughes and its rivals’ 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 -0.78% -0.93% 1.51%

Analyst Ratings

This is a summary of recent ratings and target prices for Howard Hughes and its rivals, 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 162 366 846 9 2.51

Howard Hughes presently has a consensus price target of $136.50, suggesting a potential upside of 7.43%. As a group, “Real Estate Development & Operations” companies have a potential upside of 31.35%. Given Howard Hughes’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Howard Hughes has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

85.9% of Howard Hughes shares are owned by institutional investors. Comparatively, 35.9% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 20.7% of Howard Hughes shares are owned by insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Howard Hughes rivals beat Howard Hughes on 7 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.

Receive News & Ratings for Howard Hughes Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Howard Hughes and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply