Critical Review: China Merchants Holdings International (OTCMKTS:CMHHY) & Scully Royalty (NYSE:SRL)

Scully Royalty (NYSE:SRL) and China Merchants Holdings International (OTCMKTS:CMHHY) are both multi-sector conglomerates companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Dividends

Scully Royalty pays an annual dividend of $0.26 per share and has a dividend yield of 4.5%. China Merchants Holdings International pays an annual dividend of $0.54 per share and has a dividend yield of 2.5%. Scully Royalty has increased its dividend for 1 consecutive years. Scully Royalty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Scully Royalty and China Merchants Holdings International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scully Royalty	1	0	0	0	1.00
China Merchants Holdings International	0	0	0	0	0.00

Volatility and Risk

Scully Royalty has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, China Merchants Holdings International has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Profitability

This table compares Scully Royalty and China Merchants Holdings International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scully Royalty	N/A	N/A	N/A
China Merchants Holdings International	N/A	N/A	N/A

Valuation & Earnings

This table compares Scully Royalty and China Merchants Holdings International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scully Royalty	$35.30 million	2.42	-$15.02 million	N/A	N/A
China Merchants Holdings International	$1.52 billion	6.02	$1.02 billion	N/A	N/A

China Merchants Holdings International has higher revenue and earnings than Scully Royalty.

Institutional & Insider Ownership

42.0% of Scully Royalty shares are held by institutional investors. 1.9% of Scully Royalty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Scully Royalty beats China Merchants Holdings International on 6 of the 9 factors compared between the two stocks.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.

About China Merchants Holdings International

China Merchants Port Holdings Company Limited, an investment holding company, operates as a port operator in Mainland China, Brazil, Hong Kong, Taiwan, and internationally. The company operates through Ports Operation, Bonded Logistics Operation, and Other Operations segments. It engages in the container, and bulk and general cargo terminal operation; logistic park operation, ports transportation, and airport cargo handling; and property development, holding, and investment activities. The company also provides container related logistics services; financial services; and port development, management, and operation services. In addition, it operates berths and tugboats; and holds various pieces of land. The company was formerly known as China Merchants Holdings (International) Company Limited and changed its name to China Merchants Port Holdings Company Limited in June 2016. The company was founded in 1872 and is headquartered in Central, Hong Kong.