Contrasting Kennedy-Wilson Holdings (KW) & SouFun Holdings Limited (SFUN)
Kennedy-Wilson Holdings (NYSE: KW) and SouFun Holdings Limited (NYSE:SFUN) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Insider and Institutional Ownership
84.4% of Kennedy-Wilson Holdings shares are held by institutional investors. Comparatively, 46.2% of SouFun Holdings Limited shares are held by institutional investors. 17.1% of Kennedy-Wilson Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Kennedy-Wilson Holdings pays an annual dividend of $0.68 per share and has a dividend yield of 3.6%. SouFun Holdings Limited does not pay a dividend. Kennedy-Wilson Holdings pays out 377.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kennedy-Wilson Holdings has raised its dividend for 6 consecutive years.
Volatility and Risk
Kennedy-Wilson Holdings has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, SouFun Holdings Limited has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
This table compares Kennedy-Wilson Holdings and SouFun Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SouFun Holdings Limited||-4.57%||-8.80%||-2.74%|
This is a summary of recent recommendations and price targets for Kennedy-Wilson Holdings and SouFun Holdings Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SouFun Holdings Limited||2||3||2||0||2.00|
Kennedy-Wilson Holdings presently has a consensus target price of $29.67, indicating a potential upside of 56.14%. SouFun Holdings Limited has a consensus target price of $3.63, indicating a potential downside of 14.08%. Given Kennedy-Wilson Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Kennedy-Wilson Holdings is more favorable than SouFun Holdings Limited.
Valuation and Earnings
This table compares Kennedy-Wilson Holdings and SouFun Holdings Limited’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kennedy-Wilson Holdings||$725.90 million||2.99||$234.50 million||$0.18||105.56|
|SouFun Holdings Limited||$644.69 million||2.85||$9.32 million||($0.06)||-70.33|
Kennedy-Wilson Holdings has higher revenue and earnings than SouFun Holdings Limited. SouFun Holdings Limited is trading at a lower price-to-earnings ratio than Kennedy-Wilson Holdings, indicating that it is currently the more affordable of the two stocks.
Kennedy-Wilson Holdings beats SouFun Holdings Limited on 15 of the 16 factors compared between the two stocks.
Kennedy-Wilson Holdings Company Profile
Kennedy-Wilson Holdings, Inc. is a real estate investment company. The Company owns, operates, and invests in real estate both on its own and through its investment management platform. The Company focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy and Japan. The Company’s segments include KW Investments, and KW Investment Management and Real Estate Services (IMRES). KW Investments invests in multifamily, residential and commercial properties, as well as loans secured by real estate. IMRES provides real estate-related services to investors and lenders, with a focus on financial institution-based clients. As of December 31, 2016, the Company had an ownership interest in approximately 39 million square feet of property globally, including 25,943 multifamily rental units.
SouFun Holdings Limited Company Profile
Fang Holdings Limited, formerly SouFun Holdings Limited, operates as a real estate Internet portal in China. The Company’s Websites and mobile applications support active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors in China. The Company, through its Internet platform, is engaged in the development of transaction and financing platforms by offering direct sales services for new homes, online real estate brokerage services and financial services. The Company’s service offerings include marketing services, E-commerce services, listing services, Financial services and other value-added services. The Company provides secured loans in the form of entrusted loans and mortgage loans and unsecured loans primarily to home buyers, real estate developers and other borrowers that meet its credit assessment requirements.
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