Brookfield Property Partners L.P. (NYSE: BPY) and Gafisa SA (NYSE:GFA) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitabiliy, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Brookfield Property Partners L.P. and Gafisa SA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Property Partners L.P. 0 0 3 0 3.00
Gafisa SA 1 0 0 0 1.00

Brookfield Property Partners L.P. presently has a consensus target price of $26.50, suggesting a potential upside of 9.87%. Given Brookfield Property Partners L.P.’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Brookfield Property Partners L.P. is more favorable than Gafisa SA.

Profitability

This table compares Brookfield Property Partners L.P. and Gafisa SA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Property Partners L.P. 19.50% 2.87% 1.25%
Gafisa SA -84.96% -17.04% -7.10%

Dividends

Brookfield Property Partners L.P. pays an annual dividend of $1.18 per share and has a dividend yield of 4.9%. Gafisa SA does not pay a dividend. Brookfield Property Partners L.P. pays out 68.6% of its earnings in the form of a dividend.

Volatility and Risk

Brookfield Property Partners L.P. has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Gafisa SA has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.

Earnings and Valuation

This table compares Brookfield Property Partners L.P. and Gafisa SA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brookfield Property Partners L.P. $6.77 billion 0.91 $3.76 billion $1.72 14.02
Gafisa SA $274.56 million 0.36 -$65.31 million ($25.65) -0.29

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

Insider and Institutional Ownership

63.6% of Brookfield Property Partners L.P. shares are held by institutional investors. Comparatively, 5.0% of Gafisa SA shares are held by institutional investors. 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.

Summary

Brookfield Property Partners L.P. beats Gafisa SA on 12 of the 14 factors compared between the two stocks.

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.

About Gafisa SA

Gafisa S.A. is a diversified national homebuilder. The Company’s segments are Gafisa (for ventures targeted at high and medium income) and Tenda (for ventures targeted at low income). The Company’s brands include Tenda, which serves the affordable entry-level housing segments, Gafisa, which offers a range of residential options to the mid to higher income segments and Alphaville (equity method investment), which focuses on the identification, development and sale of residential communities. In addition, it provides construction services to third parties on certain developments in the Gafisa segment where it retains an equity interest. Its real estate business activities include developments for sale of residential units, land subdivisions and commercial buildings; construction services, and sale of units through its brokerage subsidiaries, Gafisa Vendas Intermediacao Imobiliaria Ltda and Gafisa Vendas in Rio de Janeiro, jointly referred to as Gafisa Vendas.

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