Contrasting HomeFed (HOFD) & FirstService (FSV)

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

Dividends

FirstService pays an annual dividend of $0.54 per share and has a dividend yield of 0.6%. HomeFed does not pay a dividend. FirstService pays out 30.0% of its earnings in the form of a dividend. FirstService has raised its dividend for 3 consecutive years.

Profitability

This table compares FirstService and HomeFed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstService 3.41% 31.55% 7.19%
HomeFed -4.08% -1.19% -0.93%

Earnings and Valuation

This table compares FirstService and HomeFed’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstService $1.93 billion 1.50 $65.86 million $1.80 46.53
HomeFed $78.64 million 7.67 $10.93 million N/A N/A

FirstService has higher revenue and earnings than HomeFed.

Institutional and Insider Ownership

69.7% of FirstService shares are held by institutional investors. Comparatively, 8.8% of HomeFed shares are held by institutional investors. 5.6% of HomeFed shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for FirstService and HomeFed, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstService 0 4 0 0 2.00
HomeFed 0 0 0 0 N/A

FirstService currently has a consensus target price of $86.33, suggesting a potential upside of 3.08%. Given FirstService’s higher probable upside, equities analysts plainly believe FirstService is more favorable than HomeFed.

Risk & Volatility

FirstService has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, HomeFed has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Summary

FirstService beats HomeFed on 10 of the 13 factors compared between the two stocks.

About FirstService

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 17 California Closets locations and 8 Paul Davis Restoration locations. 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.

About HomeFed

HomeFed Corporation, together with its subsidiaries, invests in and develops residential and commercial real estate properties in California, Virginia, South Carolina, Florida, Maine, and New York. The company operates through three segments: Real Estate, Farming, and Corporate. The company's Real Estate segment develops residential and commercial land development projects and other unimproved land, as well as projects in various stages of development, and retail and office operating properties. This segment engages in design engineering, grading raw land, and constructing public infrastructure, such as streets, utilities, and public facilities, as well as develops individual lots for home sites or other facilities. It also holds interest in Brooklyn Renaissance Plaza, which comprises a 665 room hotel operated by Marriott; and operates an office building complex and parking space garage located in Brooklyn, New York. In addition, this segment holds interest in HomeFed Village III Master, LLC that owns and develops an approximate 450 acre community planned for 992 homes in the Otay Ranch General Plan Area of Chula Vista, California. The Farming segment operates the Rampage property, which include grape vineyard and almond orchard located in southern Madera County, California. The company has a strategic partnership with JZ Capital Partners Limited. HomeFed Corporation was incorporated in 1988 and is headquartered in Carlsbad, California.

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