Brookfield Property Partners L.P. (BPY) versus Alexander & Baldwin Holdings (ALEX) Critical Comparison
Brookfield Property Partners L.P. (NYSE: BPY) and Alexander & Baldwin Holdings (NYSE:ALEX) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Volatility & 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, Alexander & Baldwin Holdings has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.
Earnings and Valuation
This table compares Brookfield Property Partners L.P. and Alexander & Baldwin Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Property Partners L.P.||$6.95 billion||0.88||$3.85 billion||$1.58||15.08|
|Alexander & Baldwin Holdings||$405.40 million||5.15||$102.20 million||$0.21||202.05|
Brookfield Property Partners L.P. has higher revenue and earnings than Alexander & Baldwin Holdings. Brookfield Property Partners L.P. is trading at a lower price-to-earnings ratio than Alexander & Baldwin Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Brookfield Property Partners L.P. and Alexander & Baldwin Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Property Partners L.P.||17.30%||2.52%||1.08%|
|Alexander & Baldwin Holdings||2.09%||3.72%||2.07%|
Institutional and Insider Ownership
64.4% of Brookfield Property Partners L.P. shares are held by institutional investors. Comparatively, 75.6% of Alexander & Baldwin Holdings shares are held by institutional investors. 7.6% of Alexander & Baldwin Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Brookfield Property Partners L.P. pays an annual dividend of $1.18 per share and has a dividend yield of 5.0%. Alexander & Baldwin Holdings pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Brookfield Property Partners L.P. pays out 74.7% of its earnings in the form of a dividend. Alexander & Baldwin Holdings pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander & Baldwin Holdings has increased its dividend for 3 consecutive years. Brookfield Property Partners L.P. is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current recommendations and price targets for Brookfield Property Partners L.P. and Alexander & Baldwin Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Property Partners L.P.||0||0||3||0||3.00|
|Alexander & Baldwin Holdings||0||1||1||0||2.50|
Brookfield Property Partners L.P. presently has a consensus price target of $26.50, indicating a potential upside of 11.25%. Alexander & Baldwin Holdings has a consensus price target of $47.00, indicating a potential upside of 10.77%. Given Brookfield Property Partners L.P.’s stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Property Partners L.P. is more favorable than Alexander & Baldwin Holdings.
Brookfield Property Partners L.P. beats Alexander & Baldwin Holdings on 9 of the 17 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 Alexander & Baldwin Holdings
Alexander & Baldwin, Inc. (A&B) is a real estate company. The Company operates through three segments: Commercial Real Estate, Land Operations, and Materials and Construction. In addition to its 15 retail centers in Hawaii, the Company owned seven industrial assets, seven office properties and a portfolio of urban ground leases comprising 106 acres in Hawaii, as of December 31, 2016. On the United States mainland, the Company owned seven remaining commercial assets, as of December 31, 2016. The Commercial Real Estate segment owns, operates and manages retail, industrial and office properties in Hawaii and on the Mainland. The Land Operations segment manages the Company’s land and real estate-related assets and deploys these assets to their use. The Materials and Construction segment performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells basalt aggregate, and produces and sells asphaltic and ready-mix concrete.
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