Alexander & Baldwin Holdings (ALEX) & RMR Group (RMR) Critical Survey
Alexander & Baldwin Holdings (NYSE: ALEX) and RMR Group (NYSE:RMR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
This is a summary of recent recommendations for Alexander & Baldwin Holdings and RMR Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alexander & Baldwin Holdings||0||0||1||0||3.00|
Alexander & Baldwin Holdings presently has a consensus price target of $50.00, indicating a potential upside of 10.84%. RMR Group has a consensus price target of $58.00, indicating a potential upside of 17.65%. Given RMR Group’s higher probable upside, analysts clearly believe RMR Group is more favorable than Alexander & Baldwin Holdings.
Institutional and Insider Ownership
74.6% 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Alexander & Baldwin Holdings and RMR Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alexander & Baldwin Holdings||$405.40 million||5.47||$102.20 million||$0.21||214.81|
|RMR Group||$230.67 million||3.44||$154.37 million||N/A||N/A|
RMR Group has higher revenue, but lower earnings than Alexander & Baldwin Holdings.
Alexander & Baldwin Holdings pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. RMR Group does not pay a dividend. Alexander & Baldwin Holdings pays out 133.3% 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 increased its dividend for 3 consecutive years.
This table compares Alexander & Baldwin Holdings and RMR Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alexander & Baldwin Holdings||2.09%||3.72%||2.07%|
Alexander & Baldwin Holdings beats RMR Group on 8 of the 15 factors compared between the two stocks.
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.
RMR Group Company Profile
The RMR Group Inc. is a holding company. The Company’s business is primarily conducted by its subsidiary, The RMR Group LLC (RMR LLC). The Company’s segments include RMR LLC and All Other Operations. RMR LLC manages a portfolio of publicly owned real estate and real estate related businesses. RMR LLC manages Government Properties Income Trust, a real estate investment trust (REIT) that primarily owns properties that are leased to government tenants; Hospitality Properties Trust, an REIT that primarily owns hotels and travel centers; Select Income REIT, an REIT that primarily owns properties leased to single tenants across the United States and leased lands in Hawaii, and Senior Housing Properties Trust, an REIT that primarily owns senior living communities and medical office buildings. As of June 30, 2016, RMR LLC managed over 1,300 properties, which were located in 48 states, Washington, District of Columbia, Puerto Rico and Canada.
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