Analyzing Cyrela Brazil Realty (OTCMKTS:CYRBY) and Mitsubishi Estate (OTCMKTS:MITEY)

Mitsubishi Estate (OTCMKTS:MITEY) and Cyrela Brazil Realty (OTCMKTS:CYRBY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Dividends

Mitsubishi Estate pays an annual dividend of $0.21 per share and has a dividend yield of 1.0%. Cyrela Brazil Realty pays an annual dividend of $0.15 per share and has a dividend yield of 3.1%. Mitsubishi Estate pays out 20.2% of its earnings in the form of a dividend. Cyrela Brazil Realty pays out 18.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cyrela Brazil Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Mitsubishi Estate and Cyrela Brazil Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Estate	12.09%	5.48%	1.88%
Cyrela Brazil Realty	19.65%	16.95%	7.90%

Analyst Recommendations

This is a breakdown of current ratings for Mitsubishi Estate and Cyrela Brazil Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Estate	0	0	0	1	4.00
Cyrela Brazil Realty	0	0	0	0	0.00

Risk & Volatility

Mitsubishi Estate has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Cyrela Brazil Realty has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares Mitsubishi Estate and Cyrela Brazil Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi Estate	$10.37 billion	2.59	$1.27 billion	$1.04	20.63
Cyrela Brazil Realty	$1.48 billion	1.25	$305.72 million	$0.80	6.00

Mitsubishi Estate has higher revenue and earnings than Cyrela Brazil Realty. Cyrela Brazil Realty is trading at a lower price-to-earnings ratio than Mitsubishi Estate, indicating that it is currently the more affordable of the two stocks.

Summary

Mitsubishi Estate beats Cyrela Brazil Realty on 7 of the 13 factors compared between the two stocks.

About Mitsubishi Estate

Mitsubishi Estate Co., Ltd. engages in the real estate activities in Japan and internationally. The company develops, leases, manages, and sells office buildings and commercial facilities; operates rental offices, coworking space, virtual offices, hourly meeting rooms, home delivery storage service, commercial nursing homes, and building garages; offers real estate management, as well as building management services, such as security, facility management, cleaning, and planting services; and operates hotels and airports. It also engages in the construction, sales, management, and leasing of developed condominiums and residential houses; design and contract construction of custom-built houses; renovation and sales of condominiums; real estate brokerage; dark fiber leasing and data center housing business; provision of real estate investment, such as asset management services to investment corporations and real estate funds; architectural design and engineering business; cooling and heating supply business; and parking management business. In addition, the company plans and operates logistics facilities; purchases, manufactures, processes, and sells construction materials; constructs prefabricated housing using cross-laminated timber and laminated wood; constructs, manufactures, and sells furniture and household items; offers financial consulting and investment advisory services; and develops and manages information systems and software. Further, it plans, develops, and operates GYYM, a platform service for fitness facilities; Ele-Cinema, a content distribution service that utilizes projectors in elevators; WELL ROOM, a healthcare portal site for foreign residents; and delivery and takeout systems. Additionally, the company produces and sells agricultural products; and offers walking tour entertainment content, human resources, land management, and landscaping services. Mitsubishi Estate Co., Ltd. was founded in 1890 and is headquartered in Tokyo, Japan.

About Cyrela Brazil Realty

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.