Kennedy-Wilson Holdings (NYSE: KW) and Reis (NASDAQ:REIS) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Dividends

Kennedy-Wilson Holdings pays an annual dividend of $0.68 per share and has a dividend yield of 3.6%. Reis pays an annual dividend of $0.68 per share and has a dividend yield of 4.2%. Kennedy-Wilson Holdings pays out 377.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Reis pays out 680.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kennedy-Wilson Holdings has increased its dividend for 6 consecutive years.

Profitability

This table compares Kennedy-Wilson Holdings and Reis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kennedy-Wilson Holdings 3.13% 2.28% 0.69%
Reis 2.49% 1.20% 0.92%

Insider & Institutional Ownership

84.4% of Kennedy-Wilson Holdings shares are held by institutional investors. Comparatively, 59.7% of Reis shares are held by institutional investors. 17.1% of Kennedy-Wilson Holdings shares are held by insiders. Comparatively, 21.6% of Reis shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kennedy-Wilson Holdings and Reis, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kennedy-Wilson Holdings 0 2 3 0 2.60
Reis 0 0 2 0 3.00

Kennedy-Wilson Holdings presently has a consensus price target of $29.67, suggesting a potential upside of 55.73%. Reis has a consensus price target of $24.50, suggesting a potential upside of 52.17%. Given Kennedy-Wilson Holdings’ higher possible upside, equities research analysts clearly believe Kennedy-Wilson Holdings is more favorable than Reis.

Risk and Volatility

Kennedy-Wilson Holdings has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Reis has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Earnings and Valuation

This table compares Kennedy-Wilson Holdings and Reis’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kennedy-Wilson Holdings $725.90 million 3.00 $234.50 million $0.18 105.84
Reis $46.93 million 3.95 $6.64 million $0.10 161.02

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

Summary

Kennedy-Wilson Holdings beats Reis on 11 of the 17 factors compared between the two stocks.

About Kennedy-Wilson Holdings

Kennedy-Wilson Holdings, Inc. is a real estate investment company. The Company owns, operates, and invests in real estate both on its own and through its investment management platform. The Company focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy and Japan. The Company’s segments include KW Investments, and KW Investment Management and Real Estate Services (IMRES). KW Investments invests in multifamily, residential and commercial properties, as well as loans secured by real estate. IMRES provides real estate-related services to investors and lenders, with a focus on financial institution-based clients. As of December 31, 2016, the Company had an ownership interest in approximately 39 million square feet of property globally, including 25,943 multifamily rental units.

About Reis

Reis, Inc. (Reis) is engaged in providing commercial real estate market information and analytical tools to real estate professionals, through its Reis Services subsidiary. The Company operates through Reis Services segment. It maintains a database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the United States. The database contains information on apartment, office, retail, warehouse or distribution, flex or research and development, self-storage and seniors housing properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. Its product portfolio includes Reis Subscriber Edition (SE), its delivery platform aimed at larger and mid-sized enterprises; ReisReports, aimed at prosumers and smaller enterprises, and Mobiuss Portfolio CRE (Mobiuss), aimed at risk managers and credit administrators at banks and non-bank lending institutions.

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