Alset (AEI) vs. Its Peers Critical Analysis

Alset (NASDAQ:AEI) is one of 78 publicly-traded companies in the “Real estate” industry, but how does it compare to its competitors? We will compare Alset to related companies based on the strength of its dividends, analyst recommendations, earnings, risk, profitability, institutional ownership and valuation.

Risk & Volatility

Alset has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Alset’s competitors have a beta of 0.83, suggesting that their average share price is 17% less volatile than the S&P 500.

Profitability

This table compares Alset and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alset	-266.86%	-45.78%	-38.81%
Alset Competitors	-188.28%	0.55%	0.83%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Alset and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alset	0	0	0	0	N/A
Alset Competitors	212	1007	1151	34	2.42

As a group, “Real estate” companies have a potential upside of 12.77%. Given Alset’s competitors higher probable upside, analysts clearly believe Alset has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Alset and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alset	$22.09 million	-$58.95 million	-0.10
Alset Competitors	$1.50 billion	$13.31 million	50.50

Alset’s competitors have higher revenue and earnings than Alset. Alset is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

2.7% of Alset shares are held by institutional investors. Comparatively, 49.9% of shares of all “Real estate” companies are held by institutional investors. 53.5% of Alset shares are held by insiders. Comparatively, 18.2% of shares of all “Real estate” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Alset competitors beat Alset on 8 of the 9 factors compared.

Alset Company Profile

Alset Inc., together with its subsidiaries, engages in the real estate development, financial services, digital transformation technologies, biohealth activities, and consumer products businesses in the United States, Singapore, Hong Kong, Australia, and South Korea. It operates through four segments: Real Estate, Digital Transformation Technology, Biohealth, and Other Business Activities segments. The Real Estate segment develops property projects and participates in third-party property development projects; and owns, operates, and manages real estate development projects with a focus on land subdivision developments and house rental projects. The Digital Transformation Technology segment provides consulting, implementation, and development services with various technologies, including blockchain, e-commerce, social media, and payment solutions. Its technology platform focuses on business-to-business solutions, such as communications and workflow, instant messaging, international calling, social media, e-commerce and payment systems, and direct marketing solutions. The Biohealth segment engages in developing, researching, testing, manufacturing, licensing, and distributing biohealth products and services. The Other Business Activities segment offers corporate strategy and business development, asset management, corporate restructuring, and leveraged buy-out expertise services. It also operates cafes which is located in Singapore and South Korea. The company was formerly known as Alset EHome International Inc. and changed its name to Alset Inc. in October 2022. Alset Inc. was incorporated in 2018 and is headquartered in Bethesda, Maryland.