Alexander & Baldwin (ALEX) and Its Peers Head to Head Comparison

Alexander & Baldwin (NYSE: ALEX) is one of 63 public companies in the “Real Estate Development & Operations” industry, but how does it compare to its rivals? We will compare Alexander & Baldwin to similar companies based on the strength of its valuation, dividends, earnings, analyst recommendations, institutional ownership, profitability and risk.

Institutional & Insider Ownership

78.2% of Alexander & Baldwin shares are owned by institutional investors. Comparatively, 38.2% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 7.6% of Alexander & Baldwin shares are owned by company insiders. Comparatively, 42.7% of shares of all “Real Estate Development & Operations” companies are owned by company 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.

Volatility & Risk

Alexander & Baldwin has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Alexander & Baldwin’s rivals have a beta of 0.82, suggesting that their average share price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares Alexander & Baldwin and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alexander & Baldwin $387.50 million -$10.20 million 74.65
Alexander & Baldwin Competitors $437.50 million $33.21 million 1,208.86

Alexander & Baldwin’s rivals have higher revenue and earnings than Alexander & Baldwin. Alexander & Baldwin 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.

Dividends

Alexander & Baldwin pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. 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. As a group, “Real Estate Development & Operations” companies pay a dividend yield of 1.7% and pay out 31.2% of their earnings in the form of a dividend. Alexander & Baldwin has raised its dividend for 3 consecutive years. Alexander & Baldwin lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Alexander & Baldwin and its rivals’ 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%
Alexander & Baldwin Competitors -12.39% -3.72% 0.70%

Analyst Ratings

This is a summary of current ratings and recommmendations for Alexander & Baldwin and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexander & Baldwin 0 0 1 0 3.00
Alexander & Baldwin Competitors 152 371 718 9 2.47

Alexander & Baldwin presently has a consensus target price of $50.00, suggesting a potential upside of 81.03%. As a group, “Real Estate Development & Operations” companies have a potential upside of 58.79%. Given Alexander & Baldwin’s stronger consensus rating and higher probable upside, research analysts plainly believe Alexander & Baldwin is more favorable than its rivals.

Summary

Alexander & Baldwin beats its rivals on 8 of the 15 factors compared.

About Alexander & Baldwin

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.

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