Front Yard Residential (NYSE: KW) and Kennedy-Wilson (NYSE:KW) are both finance 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.

Analyst Recommendations

This is a summary of current ratings for Front Yard Residential and Kennedy-Wilson, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Front Yard Residential 0 0 2 0 3.00
Kennedy-Wilson 0 1 2 0 2.67

Front Yard Residential presently has a consensus target price of $15.00, suggesting a potential upside of 15.47%. Kennedy-Wilson has a consensus target price of $27.67, suggesting a potential upside of 30.20%. Given Kennedy-Wilson’s higher possible upside, analysts plainly believe Kennedy-Wilson is more favorable than Front Yard Residential.

Profitability

This table compares Front Yard Residential and Kennedy-Wilson’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Front Yard Residential -97.71% -20.47% -6.76%
Kennedy-Wilson 22.76% 11.75% 2.59%

Dividends

Front Yard Residential pays an annual dividend of $0.60 per share and has a dividend yield of 4.6%. Kennedy-Wilson pays an annual dividend of $0.76 per share and has a dividend yield of 3.6%. Kennedy-Wilson pays out 168.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Front Yard Residential has raised its dividend for 4 consecutive years and Kennedy-Wilson has raised its dividend for 7 consecutive years.

Volatility & Risk

Front Yard Residential has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Kennedy-Wilson has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Valuation & Earnings

This table compares Front Yard Residential and Kennedy-Wilson’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Front Yard Residential $94.17 million 7.39 -$185.45 million N/A N/A
Kennedy-Wilson $810.60 million 3.78 $100.50 million $0.45 47.22

Kennedy-Wilson has higher revenue and earnings than Front Yard Residential.

Institutional and Insider Ownership

77.5% of Front Yard Residential shares are held by institutional investors. Comparatively, 88.7% of Kennedy-Wilson shares are held by institutional investors. 0.9% of Front Yard Residential shares are held by insiders. Comparatively, 14.6% of Kennedy-Wilson 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

Kennedy-Wilson beats Front Yard Residential on 9 of the 14 factors compared between the two stocks.

Front Yard Residential Company Profile

Front Yard is an industry leader in providing quality, affordable rental homes to America's families. Our homes offer exceptional value in a variety of suburban communities which have easy accessibility to metropolitan areas. Front Yard's tenants enjoy the space and comfort that is unique to single-family housing, at reasonable prices. Our mission is to provide our tenants with houses they are proud to call home. Additional information is available at www.frontyardresidential.com.

Kennedy-Wilson Company Profile

Kennedy-Wilson Holdings, Inc. operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company owns interest in approximately 53.1 million square feet of property, including 27,161 multifamily rental units; and 18.8 million square feet of commercial property. It also provides real estate services primarily to financial services clients. In addition, the company is involved in the development, redevelopment, and entitlement of real estate properties; and management of real estate properties for third parties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.

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