Intergroup (NASDAQ:INTG) & Five Point (NYSE:FPH) Critical Analysis

Intergroup (NASDAQ:INTG) and Five Point (NYSE:FPH) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

This table compares Intergroup and Five Point’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intergroup	-12.27%	N/A	-7.02%
Five Point	39.43%	3.61%	2.52%

Earnings and Valuation

This table compares Intergroup and Five Point”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intergroup	$58.14 million	0.69	-$9.80 million	($3.41)	-5.50
Five Point	$237.93 million	3.79	$68.30 million	$1.09	5.54

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

Risk and Volatility

Intergroup has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Five Point has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Intergroup and Five Point, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intergroup	0	0	0	0	0.00
Five Point	0	0	1	0	3.00

Insider and Institutional Ownership

3.4% of Intergroup shares are held by institutional investors. Comparatively, 38.1% of Five Point shares are held by institutional investors. 74.1% of Intergroup shares are held by insiders. Comparatively, 21.5% of Five Point shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Five Point beats Intergroup on 12 of the 13 factors compared between the two stocks.

About Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.

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.