Reviewing Five Point (NYSE:FPH) & Howard Hughes (NYSE:HHH)

Five Point (NYSE:FPH) and Howard Hughes (NYSE:HHH) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Five Point and Howard Hughes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Point	0	0	1	0	3.00
Howard Hughes	0	1	2	0	2.67

Howard Hughes has a consensus price target of $80.33, suggesting a potential upside of 16.55%. Given Howard Hughes’ higher probable upside, analysts plainly believe Howard Hughes is more favorable than Five Point.

Profitability

This table compares Five Point and Howard Hughes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five Point	37.01%	4.23%	2.95%
Howard Hughes	14.27%	10.21%	3.08%

Institutional and Insider Ownership

38.1% of Five Point shares are owned by institutional investors. Comparatively, 93.8% of Howard Hughes shares are owned by institutional investors. 21.5% of Five Point shares are owned by insiders. Comparatively, 33.0% of Howard Hughes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Five Point and Howard Hughes”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five Point	$237.93 million	3.83	$68.30 million	$1.25	4.91
Howard Hughes	$1.75 billion	1.98	$200.55 million	$5.21	13.23

Howard Hughes has higher revenue and earnings than Five Point. Five Point is trading at a lower price-to-earnings ratio than Howard Hughes, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Five Point has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Howard Hughes has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Summary

Howard Hughes beats Five Point on 10 of the 14 factors compared between the two stocks.

About Five Point

Five Point Holdings, LLC, through its subsidiary, Five Point Operating Company, LP, owns and develops mixed-use and planned communities in Orange County, Los Angeles County, and San Francisco County. The company operates in four segments: Valencia, San Francisco, Great Park, and Commercial. It sells residential and commercial land sites to homebuilders, commercial developers, and commercial buyers; operates and owns a commercial office, research and development, medical campus, and other properties; and provides development and property management services. The company was formerly known as Newhall Holding Company, LLC and changed its name to Five Point Holdings, LLC in May 2016. Five Point Holdings, LLC was incorporated in 2009 and is headquartered in Irvine, California.

About Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.