Comparing FirstService (FSV) and Henderson Land Development (HLDCY)

FirstService (NASDAQ: FSV) and Henderson Land Development (OTCMKTS:HLDCY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Dividends

FirstService pays an annual dividend of $0.54 per share and has a dividend yield of 0.8%. Henderson Land Development pays an annual dividend of $0.17 per share and has a dividend yield of 2.7%. FirstService pays out 26.6% of its earnings in the form of a dividend. Henderson Land Development pays out 27.0% 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.

Valuation & Earnings

This table compares FirstService and Henderson Land Development’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstService $1.71 billion 1.43 $53.07 million $2.03 34.83
Henderson Land Development $3.14 billion 8.12 $3.90 billion $0.63 10.11

Henderson Land Development has higher revenue and earnings than FirstService. Henderson Land Development is trading at a lower price-to-earnings ratio than FirstService, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FirstService and Henderson Land Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstService 3.10% 26.98% 7.26%
Henderson Land Development N/A N/A N/A

Volatility and Risk

FirstService has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Henderson Land Development has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

65.9% of FirstService shares are held by institutional investors. Comparatively, 0.1% of Henderson Land Development shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for FirstService and Henderson Land Development, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstService 0 4 0 0 2.00
Henderson Land Development 1 0 0 0 1.00

FirstService presently has a consensus price target of $76.00, indicating a potential upside of 7.48%. Given FirstService’s stronger consensus rating and higher possible upside, equities research analysts plainly believe FirstService is more favorable than Henderson Land Development.

Summary

FirstService beats Henderson Land Development on 9 of the 14 factors compared between the two stocks.

FirstService Company Profile

FirstService Corporation provides property services to residential and commercial customers in the United States and Canada. The company operates through two segments, FirstService Residential and FirstService Brands. The FirstService Residential segment manages private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment also offers a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service swimming pool and amenity management, security and concierge/front desk, and landscaping; and financial services comprising cash management, other banking transaction-related services, and specialized property insurance brokerage. In addition, this segment provides energy management solutions and advisory services, and resale processing services. The FirstService Brands segment offers property services through 6 franchise networks; and company-owned locations, including 15 California Closets locations and 6 Paul Davis Restoration location. It offers residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; exterior residential painting and window cleaning services; fire protection services; and heating, ventilation, and air conditioning services, as well as related services. This segment provides its services primarily under the Paul Davis Restoration, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, Century Fire Protection, and Service America brand names. FirstService Corporation was founded in 1988 and is headquartered in Toronto, Canada.

Henderson Land Development Company Profile

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. It operates through Property Development, Property Leasing, Hotel Operation, Department Store Operation, Utility and Energy, and Others. Its Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, residential properties, and commercial complexes. The company's Property Leasing segment is involved in leasing properties. Its Department Store Operation segment operates and manages department stores. The company's Hotel Operation segment operates and manages hotels. Its Utility and Energy segment produces, distributes, and markets gas; and operates water supply and emerging environmentally-friendly energy businesses. The company's Others segment engages in the construction and infrastructure businesses; provision of finance, investment holding, project management, property management, agency, cleaning, and security guard services; and trading of building materials and disposal of leasehold land. Henderson Land Development Company Limited was founded in 1976 and is headquartered in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

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