Critical Analysis: Howard Hughes (HHC) and The Competition
Howard Hughes (NYSE: HHC) is one of 65 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it compare to its rivals? We will compare Howard Hughes to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, dividends, earnings, profitability and valuation.
This table compares Howard Hughes and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Howard Hughes Competitors||-6.30%||-1.29%||1.34%|
85.3% of Howard Hughes shares are owned by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 20.7% of Howard Hughes shares are owned by company insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Howard Hughes and its rivals revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Howard Hughes||$1.04 billion||$202.30 million||86.02|
|Howard Hughes Competitors||$438.91 million||$33.86 million||1,123.44|
Howard Hughes has higher revenue and earnings than its rivals. Howard Hughes is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent ratings and price targets for Howard Hughes and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Howard Hughes Competitors||155||378||784||9||2.49|
Howard Hughes currently has a consensus price target of $136.50, suggesting a potential upside of 7.95%. As a group, “Real Estate Development & Operations” companies have a potential upside of 14.18%. Given Howard Hughes’ rivals higher probable upside, analysts plainly believe Howard Hughes has less favorable growth aspects than its rivals.
Risk and Volatility
Howard Hughes has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Howard Hughes’ rivals have a beta of 0.87, suggesting that their average share price is 13% less volatile than the S&P 500.
Howard Hughes beats its rivals on 8 of the 13 factors compared.
Howard Hughes Company Profile
The Howard Hughes Corporation is a developer of master planned communities and mixed use properties. The Company is engaged in the ownership, management and the redevelopment or repositioning of real estate assets, as well as other real estate opportunities in the form of entitled and unentitled land and other development rights, also called Strategic Developments. It operates through three segments: Master Planned Communities, Operating Assets and Strategic Developments. Its Master Planned Communities segment consists of the development and sale of residential land and the development of commercial land to hold, develop or sell. Its master planned communities include The Woodlands, Summerlin, Maryland, Bridgeland and The Woodlands Hills. As of December 31, 2016, its Operating Assets segment included 54 properties, investments and other assets. As of December 31, 2016, the Strategic Developments segment included 23 development projects.
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