Head to Head Comparison: The RMR Group (NASDAQ:RMR) and Hang Lung Group (OTCMKTS:HNLGY)

Hang Lung Group (OTCMKTS:HNLGY) and The RMR Group (NASDAQ:RMR) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Insider and Institutional Ownership

42.3% of The RMR Group shares are held by institutional investors. 54.7% of The RMR Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Hang Lung Group has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, The RMR Group has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hang Lung Group and The RMR Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hang Lung Group	$1.34 billion	7.89	$231.71 million	N/A	N/A
The RMR Group	$700.28 million	0.89	$17.60 million	$1.21	15.99

Hang Lung Group has higher revenue and earnings than The RMR Group.

Dividends

Hang Lung Group pays an annual dividend of $0.79 per share and has a dividend yield of 7.6%. The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 9.3%. The RMR Group pays out 148.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has raised its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Hang Lung Group and The RMR Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hang Lung Group	0	0	0	0	0.00
The RMR Group	0	2	2	0	2.50

The RMR Group has a consensus price target of $19.00, indicating a potential downside of 1.81%. Given The RMR Group’s stronger consensus rating and higher probable upside, analysts clearly believe The RMR Group is more favorable than Hang Lung Group.

Profitability

This table compares Hang Lung Group and The RMR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hang Lung Group	N/A	N/A	N/A
The RMR Group	3.23%	3.44%	2.05%

Summary

The RMR Group beats Hang Lung Group on 11 of the 15 factors compared between the two stocks.

About Hang Lung Group

Hang Lung Group Limited, an investment holding company, operates as a property developer in Hong Kong and the Mainland of China. The company operates through Property Leasing and Property Sales segments. It develops properties for sale and lease, such as large-scale commercial, office, and residential developments. The company also invests in and develops various properties, including shopping malls, office premises, residential and industrial premises, and car parking bays. In addition, its investment properties portfolio includes Grand Gateway 66, a commercial, office, and residential complex, as well as Plaza 66, a commercial and office complex in Shanghai; Palace 66 and Forum 66 in Shenyang; Parc 66 in Jinan; Center 66 in Wuxi; Riverside 66 in Tianjin; Olympia 66 in Dalian; Spring City 66 in Kunming; and Heartland 66 in Wuhan. Further, the company offers car park and property management, financial, management, project management, and property agency services, as well as operates and manages apartment. Hang Lung Group Limited was incorporated in 1960 and is headquartered in Central, Hong Kong.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.