Head to Head Review: Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY) and FirstService (NASDAQ:FSV)

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY) and FirstService (NASDAQ:FSV) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and FirstService’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	N/A	N/A	N/A
FirstService	2.61%	18.24%	5.17%

Institutional & Insider Ownership

69.4% of FirstService shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, FirstService has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Dividends

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd pays an annual dividend of $0.16 per share and has a dividend yield of 8.2%. FirstService pays an annual dividend of $1.10 per share and has a dividend yield of 0.5%. FirstService pays out 35.3% of its earnings in the form of a dividend. FirstService has increased its dividend for 7 consecutive years.

Valuation & Earnings

This table compares Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and FirstService”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	$133.50 million	4.48	$74.68 million	N/A	N/A
FirstService	$5.22 billion	1.78	$134.38 million	$3.12	65.52

FirstService has higher revenue and earnings than Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and FirstService, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	0	0	0	0	0.00
FirstService	0	2	2	0	2.50

FirstService has a consensus price target of $217.75, indicating a potential upside of 6.53%. Given FirstService’s stronger consensus rating and higher probable upside, analysts plainly believe FirstService is more favorable than Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd.

Summary

FirstService beats Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd on 11 of the 14 factors compared between the two stocks.

About Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd

Shenzhen Investment Holdings Bay Area Development Company Limited, an investment holding company, initiates, promotes, develops, and operates toll expressways and bridges in the People’s Republic of China. The company operates through Coastal Expressway (Shenzhen Section), GS Superhighway, GZ West Superhighway, and Xintang Interchange segments. It also operates toll expressway projects comprising Guangzhou-Shenzhen superhighway and Guangzhou-Zhuhai West superhighway. In addition, the company is involved in the land development and utilization project activities. The company was formerly known as Hopewell Highway Infrastructure Limited. Shenzhen Investment Holdings Bay Area Development Company Limited was incorporated in 2003 and is based in Wan Chai, Hong Kong. The company is a subsidiary of Shenzhen Investment International Capital Holdings Infrastructure Co., Ltd.

About FirstService

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.