Contrasting Howard Hughes (HHH) & The Competition

Howard Hughes (NYSE:HHH) is one of 329 public companies in the “Real Estate Management & Development” industry, but how does it contrast to its peers? We will compare Howard Hughes to related companies based on the strength of its dividends, earnings, profitability, risk, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Howard Hughes and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Howard Hughes	0	2	1	1	2.75
Howard Hughes Competitors	1580	4687	7444	208	2.45

Howard Hughes presently has a consensus target price of $81.00, indicating a potential upside of 3.74%. As a group, “Real Estate Management & Development” companies have a potential upside of 19.91%. Given Howard Hughes’ peers higher possible upside, analysts plainly believe Howard Hughes has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Howard Hughes and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Howard Hughes	$2.37 billion	$123.90 million	15.81
Howard Hughes Competitors	$2.69 billion	-$400.38 million	29.24

Howard Hughes’ peers have higher revenue, but lower earnings than Howard Hughes. Howard Hughes is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Howard Hughes and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Howard Hughes	12.31%	7.51%	2.41%
Howard Hughes Competitors	-263.79%	-682.75%	-1.07%

Insider and Institutional Ownership

93.8% of Howard Hughes shares are held by institutional investors. Comparatively, 32.5% of shares of all “Real Estate Management & Development” companies are held by institutional investors. 47.7% of Howard Hughes shares are held by company insiders. Comparatively, 27.1% of shares of all “Real Estate Management & Development” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Howard Hughes has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Howard Hughes’ peers have a beta of -0.20, meaning that their average share price is 120% less volatile than the S&P 500.

Summary

Howard Hughes beats its peers on 9 of the 13 factors compared.

About Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.