Head to Head Analysis: Howard Hughes (HHC) vs. Its Competitors

Howard Hughes (NYSE: HHC) is one of 64 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it contrast to its peers? We will compare Howard Hughes to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

85.3% of Howard Hughes shares are owned by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 20.7% of Howard Hughes shares are owned by insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Howard Hughes and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Howard Hughes 5.83% 3.27% 1.40%
Howard Hughes Competitors -14.18% -3.58% 0.71%

Valuation & Earnings

This table compares Howard Hughes and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Howard Hughes $1.04 billion $202.30 million 90.27
Howard Hughes Competitors $419.19 million $31.78 million 1,242.77

Howard Hughes has higher revenue and earnings than its peers. Howard Hughes is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Howard Hughes has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Howard Hughes’ peers have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Howard Hughes and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Howard Hughes 0 1 1 0 2.50
Howard Hughes Competitors 153 372 771 9 2.49

Howard Hughes presently has a consensus price target of $136.50, indicating a potential upside of 3.57%. As a group, “Real Estate Development & Operations” companies have a potential upside of 15.64%. Given Howard Hughes’ peers higher possible upside, analysts plainly believe Howard Hughes has less favorable growth aspects than its peers.

Summary

Howard Hughes beats its peers on 8 of the 13 factors compared.

Howard Hughes Company Profile

The Howard Hughes Corporation is a developer of master planned communities and mixed use properties. The Company is engaged in the ownership, management and the redevelopment or repositioning of real estate assets, as well as other real estate opportunities in the form of entitled and unentitled land and other development rights, also called Strategic Developments. It operates through three segments: Master Planned Communities, Operating Assets and Strategic Developments. Its Master Planned Communities segment consists of the development and sale of residential land and the development of commercial land to hold, develop or sell. Its master planned communities include The Woodlands, Summerlin, Maryland, Bridgeland and The Woodlands Hills. As of December 31, 2016, its Operating Assets segment included 54 properties, investments and other assets. As of December 31, 2016, the Strategic Developments segment included 23 development projects.

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