Saul Centers (NYSE:BFS – Get Rating) and Alexander & Baldwin (NYSE:ALEX – Get Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Saul Centers pays an annual dividend of $2.36 per share and has a dividend yield of 7.0%. Alexander & Baldwin pays an annual dividend of $0.88 per share and has a dividend yield of 4.7%. Saul Centers pays out 143.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander & Baldwin pays out -112.8% of its earnings in the form of a dividend. Saul Centers has raised its dividend for 2 consecutive years and Alexander & Baldwin has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
45.4% of Saul Centers shares are held by institutional investors. Comparatively, 85.6% of Alexander & Baldwin shares are held by institutional investors. 50.5% of Saul Centers shares are held by company insiders. Comparatively, 1.1% of Alexander & Baldwin shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
|Net Margins||Return on Equity||Return on Assets|
|Alexander & Baldwin||-18.24%||3.30%||1.98%|
This is a summary of current recommendations and price targets for Saul Centers and Alexander & Baldwin, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alexander & Baldwin||0||1||0||0||2.00|
Saul Centers presently has a consensus target price of $46.00, suggesting a potential upside of 36.62%. Alexander & Baldwin has a consensus target price of $20.00, suggesting a potential upside of 5.71%. Given Saul Centers’ higher possible upside, equities research analysts clearly believe Saul Centers is more favorable than Alexander & Baldwin.
Volatility & Risk
Saul Centers has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Alexander & Baldwin has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Valuation and Earnings
This table compares Saul Centers and Alexander & Baldwin’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Saul Centers||$245.86 million||3.27||$50.19 million||$1.64||20.53|
|Alexander & Baldwin||$230.50 million||5.96||-$50.60 million||($0.78)||-24.26|
Saul Centers has higher revenue and earnings than Alexander & Baldwin. Alexander & Baldwin is trading at a lower price-to-earnings ratio than Saul Centers, indicating that it is currently the more affordable of the two stocks.
Saul Centers beats Alexander & Baldwin on 10 of the 14 factors compared between the two stocks.
About Saul Centers
Saul Centers, Inc. is a real estate investment trust, which engages in the ownership, management, and development of income producing properties. It operates through the following segments: Shopping Centers and Mixed-Use Properties. The Shopping Centers segment consists of community and neighbourhood shopping centers which are anchored by supermarkets, discount department stores, and drug stores. The Mixed-Use Properties segment consists of facilities which are located in differing commercial environments with distinctive demographic characteristics and are geographically removed from one another. The company was founded on June 10, 1993 and is headquartered in Bethesda, MD.
About Alexander & Baldwin
Alexander & Baldwin, Inc. engages in real estate business. It operates through the following segments: Commercial Real Estate, Land Operations, and Materials and Construction. The Commercial Real Estate segment includes investments and acquisitions, construction and development, in-house leasing and property management, and asset management. The Land Operations segment consists of legacy assets and landholdings that are subject to the company’s simplification and monetization effort. The Materials and Construction segment deals with asphalt paving contractor and natural materials and infrastructure construction services. The company was founded by Samuel Thomas Alexander and Henry Perrine Baldwin on 1870 and is headquartered in Honolulu, HI.
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