Financial Analysis: FTAI Infrastructure (NASDAQ:FIP) and Kennedy-Wilson (NYSE:KW)

FTAI Infrastructure (NASDAQ:FIP) and Kennedy-Wilson (NYSE:KW) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Valuation & Earnings

This table compares FTAI Infrastructure and Kennedy-Wilson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Infrastructure	$502.52 million	0.99	-$107.17 million	($4.51)	-0.94
Kennedy-Wilson	$501.00 million	3.06	$4.70 million	$0.11	100.14

Kennedy-Wilson has lower revenue, but higher earnings than FTAI Infrastructure. FTAI Infrastructure is trading at a lower price-to-earnings ratio than Kennedy-Wilson, indicating that it is currently the more affordable of the two stocks.

Dividends

FTAI Infrastructure pays an annual dividend of $0.12 per share and has a dividend yield of 2.8%. Kennedy-Wilson pays an annual dividend of $0.48 per share and has a dividend yield of 4.4%. FTAI Infrastructure pays out -2.7% of its earnings in the form of a dividend. Kennedy-Wilson pays out 436.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares FTAI Infrastructure and Kennedy-Wilson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTAI Infrastructure	-68.58%	-147.01%	-7.66%
Kennedy-Wilson	12.08%	23.82%	2.76%

Institutional & Insider Ownership

87.4% of FTAI Infrastructure shares are owned by institutional investors. Comparatively, 87.7% of Kennedy-Wilson shares are owned by institutional investors. 2.4% of FTAI Infrastructure shares are owned by insiders. Comparatively, 20.3% of Kennedy-Wilson shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

FTAI Infrastructure has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Kennedy-Wilson has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for FTAI Infrastructure and Kennedy-Wilson, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Infrastructure	1	0	1	0	2.00
Kennedy-Wilson	1	1	0	0	1.50

FTAI Infrastructure presently has a consensus price target of $9.00, indicating a potential upside of 113.27%. Kennedy-Wilson has a consensus price target of $11.00, indicating a potential downside of 0.14%. Given FTAI Infrastructure’s stronger consensus rating and higher probable upside, research analysts clearly believe FTAI Infrastructure is more favorable than Kennedy-Wilson.

Summary

Kennedy-Wilson beats FTAI Infrastructure on 10 of the 16 factors compared between the two stocks.

About FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.

About Kennedy-Wilson

Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company had ownership interests in multifamily units, office space, retail and industrial space, and a hotel. It is involved in the development, redevelopment, and entitlement of real estate properties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.