Reviewing Alexander & Baldwin Holdings (ALEX) and Howard Hughes Corporation (The) (NYSE:HHC)

Alexander & Baldwin Holdings (NYSE: ALEX) and Howard Hughes Corporation (The) (NYSE:HHC) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares Alexander & Baldwin Holdings and Howard Hughes Corporation (The)’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%
Howard Hughes Corporation (The) 5.69% 4.80% 1.98%

Analyst Ratings

This is a summary of current ratings for Alexander & Baldwin Holdings and Howard Hughes Corporation (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexander & Baldwin Holdings 0 1 1 0 2.50
Howard Hughes Corporation (The) 0 1 2 0 2.67

Alexander & Baldwin Holdings presently has a consensus target price of $47.00, indicating a potential upside of 11.77%. Howard Hughes Corporation (The) has a consensus target price of $144.33, indicating a potential upside of 22.38%. Given Howard Hughes Corporation (The)’s stronger consensus rating and higher possible upside, analysts clearly believe Howard Hughes Corporation (The) is more favorable than Alexander & Baldwin Holdings.

Insider and Institutional Ownership

75.6% of Alexander & Baldwin Holdings shares are owned by institutional investors. Comparatively, 80.4% of Howard Hughes Corporation (The) shares are owned by institutional investors. 7.6% of Alexander & Baldwin Holdings shares are owned by insiders. Comparatively, 20.7% of Howard Hughes Corporation (The) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Alexander & Baldwin Holdings pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Howard Hughes Corporation (The) 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. Howard Hughes Corporation (The) has increased its dividend for 3 consecutive years.

Risk and Volatility

Alexander & Baldwin Holdings has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Howard Hughes Corporation (The) has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Valuation and Earnings

This table compares Alexander & Baldwin Holdings and Howard Hughes Corporation (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alexander & Baldwin Holdings $405.40 million 5.10 $102.20 million $0.21 200.24
Howard Hughes Corporation (The) $1.06 billion 4.81 $295.39 million $1.41 83.65

Howard Hughes Corporation (The) has higher revenue and earnings than Alexander & Baldwin Holdings. Howard Hughes Corporation (The) 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.

Summary

Howard Hughes Corporation (The) beats Alexander & Baldwin Holdings on 12 of the 17 factors compared between the two stocks.

Alexander & Baldwin Holdings 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.

Howard Hughes Corporation (The) 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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