Fang (NYSE: SFUN) and FirstService (NASDAQ:FSV) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fang and FirstService, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fang 0 1 2 0 2.67
FirstService 0 6 0 0 2.00

Fang currently has a consensus target price of $4.55, suggesting a potential upside of 4.12%. FirstService has a consensus target price of $66.50, suggesting a potential downside of 2.02%. Given Fang’s stronger consensus rating and higher probable upside, research analysts plainly believe Fang is more favorable than FirstService.

Insider & Institutional Ownership

45.4% of Fang shares are held by institutional investors. Comparatively, 61.2% of FirstService shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Fang and FirstService’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fang $916.39 million 2.11 -$169.63 million ($0.02) -218.50
FirstService $1.48 billion 1.64 $33.59 million $1.24 54.73

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

Dividends

FirstService pays an annual dividend of $0.49 per share and has a dividend yield of 0.7%. Fang does not pay a dividend. FirstService pays out 39.5% of its earnings in the form of a dividend.

Volatility and Risk

Fang has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, FirstService has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Fang -1.83% -3.20% -1.06%
FirstService 2.74% 24.16% 5.65%

Summary

FirstService beats Fang on 8 of the 14 factors compared between the two stocks.

Fang 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.

FirstService Company Profile

Firstservice Corporation is a provider of residential property management and other essential property services to residential and commercial customers. The Company operates through two segments: FirstService Residential and FirstService Brands. FirstService Residential is a property manager and provides ancillary services in the areas of on-site staffing, including building engineering and maintenance, full-service amenity management, security, concierge and front desk personnel, and landscaping; banking and insurance products, and energy conservation and management solutions. FirstService Brands provides essential property services to residential and commercial customers in North America through franchise networks and Company-owned locations. The principal brands in this division include Paul Davis Restoration, California Closets, Certa Pro Painters, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, Century Fire Protection and Service America.

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