Head-To-Head Survey: Cyrela Brazil Realty (OTCMKTS:CYRBY) and KE (NYSE:BEKE)

Cyrela Brazil Realty (OTCMKTS:CYRBY) and KE (NYSE:BEKE) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Profitability

This table compares Cyrela Brazil Realty and KE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyrela Brazil Realty	20.58%	17.27%	7.75%
KE	5.38%	7.62%	4.38%

Dividends

Cyrela Brazil Realty pays an annual dividend of $0.44 per share and has a dividend yield of 6.9%. KE pays an annual dividend of $0.23 per share and has a dividend yield of 1.3%. Cyrela Brazil Realty pays out 46.8% of its earnings in the form of a dividend. KE pays out 37.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Cyrela Brazil Realty and KE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyrela Brazil Realty	$1.69 billion	1.46	$359.41 million	$0.94	6.82
KE	$13.52 billion	1.49	$428.13 million	$0.61	29.58

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

Risk & Volatility

Cyrela Brazil Realty has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, KE has a beta of -0.26, indicating that its share price is 126% less volatile than the S&P 500.

Institutional and Insider Ownership

39.3% of KE shares are held by institutional investors. 6.8% of KE shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Cyrela Brazil Realty and KE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyrela Brazil Realty	0	1	0	0	2.00
KE	0	1	6	1	3.00

KE has a consensus price target of $23.64, indicating a potential upside of 31.01%. Given KE’s stronger consensus rating and higher probable upside, analysts plainly believe KE is more favorable than Cyrela Brazil Realty.

Summary

KE beats Cyrela Brazil Realty on 11 of the 17 factors compared between the two stocks.

About Cyrela Brazil Realty

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.