Financial Review: HomeFed (HOFD) & CAHS China HGS Real Estate (HGSH)

HomeFed (OTCMKTS:HOFD) and CAHS China HGS Real Estate (NASDAQ:HGSH) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

8.9% of HomeFed shares are owned by institutional investors. Comparatively, 0.1% of CAHS China HGS Real Estate shares are owned by institutional investors. 5.6% of HomeFed shares are owned by company insiders. Comparatively, 70.1% of CAHS China HGS Real Estate shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares HomeFed and CAHS China HGS Real Estate’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HomeFed $78.64 million 9.25 $10.93 million N/A N/A
CAHS China HGS Real Estate $58.67 million 1.02 $6.32 million N/A N/A

HomeFed has higher revenue and earnings than CAHS China HGS Real Estate.

Volatility and Risk

HomeFed has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, CAHS China HGS Real Estate has a beta of 3.49, meaning that its share price is 249% more volatile than the S&P 500.

Profitability

This table compares HomeFed and CAHS China HGS Real Estate’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HomeFed -4.08% -1.19% -0.93%
CAHS China HGS Real Estate 13.26% 5.82% 2.54%

Analyst Recommendations

This is a summary of recent recommendations for HomeFed and CAHS China HGS Real Estate, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HomeFed 0 0 0 0 N/A
CAHS China HGS Real Estate 0 0 0 0 N/A

Summary

CAHS China HGS Real Estate beats HomeFed on 5 of the 9 factors compared between the two stocks.

HomeFed Company Profile

HomeFed Corporation, together with its subsidiaries, invests in and develops residential and commercial real estate properties in California, Virginia, South Carolina, Florida, Maine, and New York. The company operates through three segments: Real Estate, Farming, and Corporate. The company's Real Estate segment develops residential and commercial land development projects and other unimproved land, as well as projects in various stages of development, and retail and office operating properties. This segment engages in design engineering, grading raw land, and constructing public infrastructure, such as streets, utilities, and public facilities, as well as develops individual lots for home sites or other facilities. It also holds interest in Brooklyn Renaissance Plaza, which comprises a 665 room hotel operated by Marriott; and operates an office building complex and parking space garage located in Brooklyn, New York. In addition, this segment holds interest in HomeFed Village III Master, LLC that owns and develops an approximate 450 acre community planned for 992 homes in the Otay Ranch General Plan Area of Chula Vista, California. The Farming segment operates the Rampage property, which include grape vineyard and almond orchard located in southern Madera County, California. The company was incorporated in 1988 and is headquartered in Carlsbad, California.

CAHS China HGS Real Estate Company Profile

China HGS Real Estate Inc., through its subsidiaries, develops real estate properties in the People's Republic of China. The company engages in the construction and sale of residential apartments, parking lots, and commercial properties. It develops multi-layer, sub-high-rise, and high-rise apartment buildings, as well as office buildings. The company was founded in 1995 and is headquartered in Hanzhong, the People's Republic of China.

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