Alexander & Baldwin (NYSE: ALEX) and The RMR Group (NASDAQ:RMR) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.
Risk and Volatility
Alexander & Baldwin has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, The RMR Group has a beta of -0.86, meaning that its share price is 186% less volatile than the S&P 500.
77.8% of Alexander & Baldwin shares are held by institutional investors. Comparatively, 34.5% of The RMR Group shares are held by institutional investors. 7.6% of Alexander & Baldwin shares are held by insiders. Comparatively, 55.3% of The RMR Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Alexander & Baldwin pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. The RMR Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Alexander & Baldwin pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group pays out 36.0% of its earnings in the form of a dividend. Alexander & Baldwin has increased its dividend for 3 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent recommendations and price targets for Alexander & Baldwin and The RMR Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alexander & Baldwin||0||0||1||0||3.00|
|The RMR Group||0||3||2||0||2.40|
Alexander & Baldwin presently has a consensus price target of $50.00, indicating a potential upside of 72.06%. The RMR Group has a consensus price target of $59.50, indicating a potential downside of 1.24%. Given Alexander & Baldwin’s stronger consensus rating and higher possible upside, research analysts clearly believe Alexander & Baldwin is more favorable than The RMR Group.
This table compares Alexander & Baldwin and The RMR Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alexander & Baldwin||4.15%||3.89%||2.18%|
|The RMR Group||16.44%||10.14%||7.43%|
Valuation & Earnings
This table compares Alexander & Baldwin and The RMR Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alexander & Baldwin||$387.50 million||3.69||-$10.20 million||$0.37||78.54|
|The RMR Group||$266.94 million||3.41||$37.24 million||$2.78||21.67|
The RMR Group has lower revenue, but higher earnings than Alexander & Baldwin. The RMR Group is trading at a lower price-to-earnings ratio than Alexander & Baldwin, indicating that it is currently the more affordable of the two stocks.
The RMR Group beats Alexander & Baldwin on 10 of the 17 factors compared between the two stocks.
Alexander & Baldwin Company Profile
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.
The RMR Group Company Profile
The RMR Group Inc. is a holding company. The Company’s business is primarily conducted by its subsidiary, The RMR Group LLC (RMR LLC). The Company’s segments include RMR LLC and All Other Operations. RMR LLC manages a portfolio of publicly owned real estate and real estate related businesses. RMR LLC manages Government Properties Income Trust, a real estate investment trust (REIT) that primarily owns properties that are leased to government tenants; Hospitality Properties Trust, an REIT that primarily owns hotels and travel centers; Select Income REIT, an REIT that primarily owns properties leased to single tenants across the United States and leased lands in Hawaii, and Senior Housing Properties Trust, an REIT that primarily owns senior living communities and medical office buildings. As of June 30, 2016, RMR LLC managed over 1,300 properties, which were located in 48 states, Washington, District of Columbia, Puerto Rico and Canada.
Receive News & Ratings for Alexander & Baldwin Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alexander & Baldwin Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.