Alexander & Baldwin Holdings (NYSE: ALEX) and REDFIN CORP (NASDAQ:RDFN) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

74.6% of Alexander & Baldwin Holdings shares are owned by institutional investors. 7.6% of Alexander & Baldwin Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Alexander & Baldwin Holdings and REDFIN CORP’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alexander & Baldwin Holdings $405.40 million 5.47 $102.20 million $0.21 214.81
REDFIN CORP N/A N/A N/A N/A N/A

Alexander & Baldwin Holdings has higher revenue and earnings than REDFIN CORP.

Dividends

Alexander & Baldwin Holdings pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. REDFIN CORP does not pay 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 raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Alexander & Baldwin Holdings and REDFIN CORP, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexander & Baldwin Holdings 0 0 1 0 3.00
REDFIN CORP 0 4 2 0 2.33

Alexander & Baldwin Holdings currently has a consensus target price of $50.00, suggesting a potential upside of 10.84%. REDFIN CORP has a consensus target price of $27.00, suggesting a potential upside of 12.03%. Given REDFIN CORP’s higher probable upside, analysts clearly believe REDFIN CORP is more favorable than Alexander & Baldwin Holdings.

Profitability

This table compares Alexander & Baldwin Holdings and REDFIN CORP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alexander & Baldwin Holdings 2.09% 3.72% 2.07%
REDFIN CORP N/A N/A N/A

Summary

Alexander & Baldwin Holdings beats REDFIN CORP on 9 of the 12 factors compared between the two stocks.

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.

About REDFIN CORP

Redfin Corporation is engaged in providing residential real estate brokerage services. The customer can search for homes by neighborhood, city or MLS number, or can refine results using detailed parameters, such as price and number of beds or baths. The Company serves home buyers and sellers. The Company offers online tools to consumers, including Redfin Estimate, which is an automated home-valuation tool. The customer can search homes for sale in Austin, Atlanta, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Fort Lauderdale, Houston, Lake Tahoe, Las Vegas, Los Angeles, Miami, Philadelphia, Phoenix, Portland, OR, Raleigh, San Antonio, San Diego, San Francisco, Sacramento, San Jose, Seattle and Washington. The Company serves over 80 metro areas across the United States.

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