Financial Analysis: Keppel REIT (OTCMKTS:KREVF) & Kennedy-Wilson (NYSE:KW)

Kennedy-Wilson (NYSE:KWGet Free Report) and Keppel REIT (OTCMKTS:KREVFGet Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Risk and Volatility

Kennedy-Wilson has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Keppel REIT has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Kennedy-Wilson and Keppel REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kennedy-Wilson -7.92% 2.98% 0.50%
Keppel REIT N/A N/A N/A

Institutional & Insider Ownership

87.3% of Kennedy-Wilson shares are owned by institutional investors. 23.7% of Kennedy-Wilson shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Kennedy-Wilson and Keppel REIT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kennedy-Wilson $559.60 million 2.48 $93.70 million ($0.52) -19.17
Keppel REIT $173.57 million 13.94 $300.96 million N/A N/A

Keppel REIT has lower revenue, but higher earnings than Kennedy-Wilson.

Analyst Ratings

This is a summary of recent recommendations and price targets for Kennedy-Wilson and Keppel REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kennedy-Wilson 1 1 0 0 1.50
Keppel REIT 0 2 0 0 2.00

Kennedy-Wilson currently has a consensus target price of $11.00, suggesting a potential upside of 10.33%. Given Kennedy-Wilson’s higher possible upside, equities research analysts clearly believe Kennedy-Wilson is more favorable than Keppel REIT.

Summary

Kennedy-Wilson beats Keppel REIT on 7 of the 11 factors compared between the two stocks.

About Kennedy-Wilson

(Get Free Report)

Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company had ownership interests in multifamily units, office space, retail and industrial space, and a hotel. It is also involved in the development, redevelopment, and entitlement of real estate properties. The company was founded in 1977 and is headquartered in Beverly Hills, California.

About Keppel REIT

(Get Free Report)

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of prime commercial assets in Asia Pacific's key business districts. Keppel REIT's objective is to generate stable income and sustainable long-term total return for its Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Asia Pacific. Keppel REIT has a portfolio value of over $9.0 billion, comprising properties in Singapore; the key Australian cities of Sydney, Melbourne and Perth; Seoul, South Korea; as well as Tokyo, Japan. Keppel REIT is managed by Keppel REIT Management Limited and sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.

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