Analyzing FirstService (FSV) & HANG LUNG PROPE/S (HLPPY)

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FirstService (NASDAQ:FSV) and HANG LUNG PROPE/S (OTCMKTS:HLPPY) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

63.5% of FirstService shares are owned by institutional investors. Comparatively, 0.2% of HANG LUNG PROPE/S shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for FirstService and HANG LUNG PROPE/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstService 0 4 0 0 2.00
HANG LUNG PROPE/S 0 0 0 0 N/A

FirstService presently has a consensus target price of $84.67, suggesting a potential upside of 12.50%. Given FirstService’s higher probable upside, equities analysts clearly believe FirstService is more favorable than HANG LUNG PROPE/S.

Earnings & Valuation

This table compares FirstService and HANG LUNG PROPE/S’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstService $1.71 billion 1.53 $53.07 million $2.03 37.07
HANG LUNG PROPE/S $1.44 billion 6.02 $1.04 billion N/A N/A

HANG LUNG PROPE/S has lower revenue, but higher earnings than FirstService.

Dividends

FirstService pays an annual dividend of $0.54 per share and has a dividend yield of 0.7%. HANG LUNG PROPE/S pays an annual dividend of $0.19 per share and has a dividend yield of 2.0%. FirstService pays out 26.6% of its earnings in the form of a dividend. FirstService has raised its dividend for 2 consecutive years.

Profitability

This table compares FirstService and HANG LUNG PROPE/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstService 3.71% 36.30% 8.32%
HANG LUNG PROPE/S N/A N/A N/A

Risk and Volatility

FirstService has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, HANG LUNG PROPE/S has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Summary

FirstService beats HANG LUNG PROPE/S on 7 of the 12 factors compared between the two stocks.

About FirstService

FirstService Corporation provides property services to residential and commercial customers in the United States and Canada. The company operates through two segments, FirstService Residential and FirstService Brands. The FirstService Residential segment manages private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment also offers a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service swimming pool and amenity management, security and concierge/front desk, and landscaping; and financial services comprising cash management, other banking transaction-related services, and specialized property insurance brokerage. In addition, this segment provides energy management solutions and advisory services, and resale processing services. The FirstService Brands segment offers property services through 6 franchise networks; and company-owned locations, including 15 California Closets locations and 6 Paul Davis Restoration location. It offers residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; exterior residential painting and window cleaning services; fire protection services; and heating, ventilation, and air conditioning services, as well as related services. This segment provides its services primarily under the Paul Davis Restoration, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, Century Fire Protection, and Service America brand names. FirstService Corporation was founded in 1988 and is headquartered in Toronto, Canada.

About HANG LUNG PROPE/S

Hang Lung Properties Limited, an investment holding company, engages in the property investment, development, and management activities in Hong Kong and Mainland China. The company operates through Property Leasing and Property Sales segments. Its investment properties portfolio includes retail, office, residential, serviced apartment, and car park properties. The company is also involved in property leasing; apartment operating and management; car park and project management; and property agency activities. In addition, it provides management and financial services. The company was incorporated in 1949 and is headquartered in Central, Hong Kong. Hang Lung Properties Limited is a subsidiary of Hang Lung Group Limited.

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