Five Point Holdings (NYSE: FPH) and Alexander & Baldwin Holdings (NYSE:ALEX) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitabiliy, analyst recommendations, institutional ownership, earnings, dividends and risk.

Institutional and Insider Ownership

75.7% of Alexander & Baldwin Holdings shares are owned by institutional investors. 7.6% of Alexander & Baldwin Holdings shares are owned 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.

Dividends

Alexander & Baldwin Holdings pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Five Point Holdings does not pay a dividend. Alexander & Baldwin Holdings pays out 254.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander & Baldwin Holdings has raised its dividend for 3 consecutive years.

Profitability

This table compares Five Point Holdings and Alexander & Baldwin Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Five Point Holdings N/A N/A N/A
Alexander & Baldwin Holdings 0.90% 4.22% 2.34%

Analyst Recommendations

This is a breakdown of current recommendations for Five Point Holdings and Alexander & Baldwin Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five Point Holdings 0 2 4 0 2.67
Alexander & Baldwin Holdings 0 1 1 0 2.50

Five Point Holdings presently has a consensus price target of $19.70, suggesting a potential upside of 38.25%. Alexander & Baldwin Holdings has a consensus price target of $47.00, suggesting a potential upside of 12.55%. Given Five Point Holdings’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Five Point Holdings is more favorable than Alexander & Baldwin Holdings.

Valuation & Earnings

This table compares Five Point Holdings and Alexander & Baldwin Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Five Point Holdings $39.37 million 13.55 -$100.11 million N/A N/A
Alexander & Baldwin Holdings $389.30 million 5.27 $99.50 million $0.11 379.64

Alexander & Baldwin Holdings has higher revenue and earnings than Five Point Holdings.

Summary

Alexander & Baldwin Holdings beats Five Point Holdings on 9 of the 14 factors compared between the two stocks.

Five Point Holdings Company Profile

Five Point Holdings, LLC, formerly Newhall Holding Company, LLC, is the owner and developer of mixed-use, planned communities in coastal California. The Company is primarily engaged in the business of planning and developing its three mixed-use, planned communities. It operates in three segments: Newhall, San Francisco and Great Park. Its three mixed-use, planned communities are: Newhall Ranch in Los Angeles County; The San Francisco Shipyard and Candlestick Point in the City of San Francisco; and Great Park Neighborhoods in Orange County. Newhall Ranch consists of approximately 15,000 acres in northern Los Angeles County. Newhall Ranch is designed to include approximately 21,500 home sites and approximately 11.5 million square feet of commercial space. The San Francisco Shipyard and Candlestick Point consists of approximately 800 acres of bay front property in the city of San Francisco. Great Park Neighborhoods consists of approximately 2,100 acres in Orange County, California.

Alexander & Baldwin Holdings Company Profile

Alexander & Baldwin, Inc. (A&B) is a real estate company. The Company operates through three segments: Commercial Real Estate, Land Operations, and Materials and Construction. In addition to its 15 retail centers in Hawaii, the Company owned seven industrial assets, seven office properties and a portfolio of urban ground leases comprising 106 acres in Hawaii, as of December 31, 2016. On the United States mainland, the Company owned seven remaining commercial assets, as of December 31, 2016. The Commercial Real Estate segment owns, operates and manages retail, industrial and office properties in Hawaii and on the Mainland. The Land Operations segment manages the Company’s land and real estate-related assets and deploys these assets to their use. The Materials and Construction segment performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells basalt aggregate, and produces and sells asphaltic and ready-mix concrete.

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