Contrasting Xinyuan Real Estate (NYSE:XIN) & Mitsubishi Estate (OTCMKTS:MITEY)

Xinyuan Real Estate (NYSE:XIN) and Mitsubishi Estate (OTCMKTS:MITEY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Volatility and Risk

Xinyuan Real Estate has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Mitsubishi Estate has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Profitability

This table compares Xinyuan Real Estate and Mitsubishi Estate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xinyuan Real Estate	N/A	N/A	N/A
Mitsubishi Estate	12.09%	5.65%	1.91%

Dividends

Xinyuan Real Estate pays an annual dividend of $0.02 per share and has a dividend yield of 1.0%. Mitsubishi Estate pays an annual dividend of $0.21 per share and has a dividend yield of 0.9%. Mitsubishi Estate pays out 20.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.0% of Xinyuan Real Estate shares are owned by institutional investors. 55.8% of Xinyuan Real Estate shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Xinyuan Real Estate and Mitsubishi Estate”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xinyuan Real Estate	$514.67 million	0.02	-$51.02 million	N/A	N/A
Mitsubishi Estate	$10.37 billion	2.77	$1.27 billion	$1.04	22.12

Mitsubishi Estate has higher revenue and earnings than Xinyuan Real Estate.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Xinyuan Real Estate and Mitsubishi Estate, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xinyuan Real Estate	0	0	0	0	0.00
Mitsubishi Estate	0	0	0	1	4.00

Summary

Mitsubishi Estate beats Xinyuan Real Estate on 8 of the 13 factors compared between the two stocks.

About Xinyuan Real Estate

Xinyuan Real Estate Co., Ltd., together with its subsidiaries, engages in residential real estate development and construction in the People's Republic of China, the United States, Malaysia, and the United Kingdom. The company develops residential projects, such as multi-layer apartment buildings, sub-high-rise apartment buildings, high-rise apartment buildings; auxiliary services and amenities, such as retail outlets, leisure and health facilities, kindergartens, and schools, as well as office, mixed-use, and commercial properties. It also acquires development sites through public auctions of government land and acquisitions of entities. In addition, the company provides property management services for its developments and other real estate-related services; offers landscaping, engineering and management, real estate consulting, leasing management, management consulting, and technical services; operates retail stores; and installs intercom systems. Further, it engages in the purchase, sale, lease, and brokerage of real estate; sale of construction materials; development and sale of robots; operation of internet platform for real estate property financing; and provision of electronic commerce and catering services. The company was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

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.