Howard Hughes Corporation (The) (NYSE: HHC) and Brookfield Property Partners L.P. (NYSE:BPY) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Earnings and Valuation

This table compares Howard Hughes Corporation (The) and Brookfield Property Partners L.P.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Howard Hughes Corporation (The) $1.03 billion 4.89 $302.06 million $1.50 84.03
Brookfield Property Partners L.P. $6.77 billion 0.89 $3.76 billion $1.72 13.63

Brookfield Property Partners L.P. has higher revenue and earnings than Howard Hughes Corporation (The). Brookfield Property Partners L.P. is trading at a lower price-to-earnings ratio than Howard Hughes Corporation (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Howard Hughes Corporation (The) and Brookfield Property Partners L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Howard Hughes Corporation (The) 6.27% 7.54% 3.02%
Brookfield Property Partners L.P. 19.50% 2.87% 1.25%

Insider & Institutional Ownership

86.5% of Howard Hughes Corporation (The) shares are held by institutional investors. Comparatively, 63.1% of Brookfield Property Partners L.P. shares are held by institutional investors. 13.8% of Howard Hughes Corporation (The) shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Howard Hughes Corporation (The) has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Brookfield Property Partners L.P. has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Dividends

Brookfield Property Partners L.P. pays an annual dividend of $1.18 per share and has a dividend yield of 5.0%. Howard Hughes Corporation (The) does not pay a dividend. Brookfield Property Partners L.P. pays out 68.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Howard Hughes Corporation (The) and Brookfield Property Partners L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Howard Hughes Corporation (The) 0 1 3 0 2.75
Brookfield Property Partners L.P. 0 0 3 0 3.00

Howard Hughes Corporation (The) presently has a consensus price target of $149.75, suggesting a potential upside of 18.80%. Brookfield Property Partners L.P. has a consensus price target of $28.83, suggesting a potential upside of 23.01%. Given Brookfield Property Partners L.P.’s stronger consensus rating and higher possible upside, analysts plainly believe Brookfield Property Partners L.P. is more favorable than Howard Hughes Corporation (The).

Summary

Howard Hughes Corporation (The) beats Brookfield Property Partners L.P. on 8 of the 15 factors compared between the two stocks.

About Howard Hughes Corporation (The)

The Howard Hughes Corporation is a developer of master planned communities and mixed use properties. The Company is engaged in the ownership, management and the redevelopment or repositioning of real estate assets, as well as other real estate opportunities in the form of entitled and unentitled land and other development rights, also called Strategic Developments. It operates through three segments: Master Planned Communities, Operating Assets and Strategic Developments. Its Master Planned Communities segment consists of the development and sale of residential land and the development of commercial land to hold, develop or sell. Its master planned communities include The Woodlands, Summerlin, Maryland, Bridgeland and The Woodlands Hills. As of December 31, 2016, its Operating Assets segment included 54 properties, investments and other assets. As of December 31, 2016, the Strategic Developments segment included 23 development projects.

About Brookfield Property Partners L.P.

Brookfield Property Partners L.P. is a diversified global real estate company. The Company owns, operates and develops a portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage and student housing assets. Its partnership is Brookfield Asset Management Inc.’s public commercial property entity and the primary vehicle through which it invests in real estate on a global basis. It operates through four segments: Core Office, Core Retail, Opportunistic and Corporate. As of December 31, 2016, its Core Office segment consisted of interests in 142 office properties totaling 99 million square feet. As of December 31, 2016, its Core Retail segment consisted of interests in 127 regional malls and urban retail properties. As of December 31, 2016, its Opportunistic segment consisted of 107 office properties comprising approximately 29 million square feet of office space in the United States, United Kingdom, Brazil and Asia.

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