Head to Head Survey: Douglas Elliman (NYSE:DOUG) & Kennedy-Wilson (NYSE:KW)

Kennedy-Wilson (NYSE:KW) and Douglas Elliman (NYSE:DOUG) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Volatility & Risk

Kennedy-Wilson has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Douglas Elliman has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Profitability

This table compares Kennedy-Wilson and Douglas Elliman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kennedy-Wilson	1.59%	19.00%	2.22%
Douglas Elliman	-5.76%	-3.19%	-0.93%

Valuation and Earnings

This table compares Kennedy-Wilson and Douglas Elliman”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kennedy-Wilson	$531.40 million	2.54	-$33.00 million	($0.26)	-37.63
Douglas Elliman	$995.63 million	0.21	-$76.32 million	($0.70)	-3.31

Kennedy-Wilson has higher earnings, but lower revenue than Douglas Elliman. Kennedy-Wilson is trading at a lower price-to-earnings ratio than Douglas Elliman, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Kennedy-Wilson and Douglas Elliman, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kennedy-Wilson	2	1	0	0	1.33
Douglas Elliman	1	0	0	0	1.00

Kennedy-Wilson presently has a consensus target price of $10.00, suggesting a potential upside of 2.20%. Given Kennedy-Wilson’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Kennedy-Wilson is more favorable than Douglas Elliman.

Insider & Institutional Ownership

87.7% of Kennedy-Wilson shares are held by institutional investors. Comparatively, 59.6% of Douglas Elliman shares are held by institutional investors. 22.7% of Kennedy-Wilson shares are held by company insiders. Comparatively, 6.8% of Douglas Elliman shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Kennedy-Wilson beats Douglas Elliman on 10 of the 13 factors compared between the two stocks.

About Kennedy-Wilson

Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company had ownership interests in multifamily units, office space, retail and industrial space, and a hotel. It is involved in the development, redevelopment, and entitlement of real estate properties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.

About Douglas Elliman

Douglas Elliman Inc. owns Douglas Elliman Realty, LLC, operating as a residential brokerage company in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.