Contrasting Reis (REIS) & Kennedy-Wilson Holdings (KW)

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

Institutional & Insider Ownership

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

Profitability

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

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

Valuation and Earnings

This table compares Reis and Kennedy-Wilson Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Reis $46.93 million 4.35 $6.64 million $0.10 177.52
Kennedy-Wilson Holdings $725.90 million 2.97 $234.50 million $0.18 105.01

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.

Dividends

Reis pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. Kennedy-Wilson Holdings pays an annual dividend of $0.68 per share and has a dividend yield of 3.6%. 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 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 has increased its dividend for 6 consecutive years. Reis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

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

Analyst Ratings

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

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

Reis presently has a consensus price target of $24.50, suggesting a potential upside of 38.03%. Kennedy-Wilson Holdings has a consensus price target of $29.67, suggesting a potential upside of 56.97%. Given Kennedy-Wilson Holdings’ higher possible upside, analysts plainly believe Kennedy-Wilson Holdings is more favorable than Reis.

Summary

Kennedy-Wilson Holdings beats Reis on 10 of the 17 factors compared between the two stocks.

Reis Company Profile

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.

Kennedy-Wilson Holdings Company Profile

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.

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