IRSA Inversiones Y Representaciones (NYSE:IRS) vs. Five Point (NYSE:FPH) Critical Review

IRSA Inversiones Y Representaciones (NYSE:IRS) and Five Point (NYSE:FPH) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

45.5% of IRSA Inversiones Y Representaciones shares are held by institutional investors. Comparatively, 38.1% of Five Point shares are held by institutional investors. 25.1% of IRSA Inversiones Y Representaciones shares are held by company insiders. Comparatively, 21.5% of Five Point shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares IRSA Inversiones Y Representaciones and Five Point”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IRSA Inversiones Y Representaciones	$409.02 million	3.02	$195.18 million	$4.97	3.21
Five Point	$237.93 million	3.55	$68.30 million	$1.30	4.42

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

Volatility and Risk

IRSA Inversiones Y Representaciones has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Five Point has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Profitability

This table compares IRSA Inversiones Y Representaciones and Five Point’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IRSA Inversiones Y Representaciones	86.65%	27.35%	13.44%
Five Point	48.56%	4.24%	2.99%

Analyst Recommendations

This is a breakdown of current ratings and target prices for IRSA Inversiones Y Representaciones and Five Point, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IRSA Inversiones Y Representaciones	0	1	0	0	2.00
Five Point	0	0	2	0	3.00

Summary

IRSA Inversiones Y Representaciones beats Five Point on 9 of the 13 factors compared between the two stocks.

About IRSA Inversiones Y Representaciones

IRSA Inversiones y Representaciones Sociedad Anónima, together with its subsidiaries, engages in the diversified real estate activities in Argentina. It operates through five segments: Shopping Malls, Offices, Hotels, Sales and Developments, and Others. The company is involved in the acquisition, development, and operation of shopping malls, office buildings, and other non-shopping mall properties primarily for rental purposes. It also acquires and operates luxury hotels and resorts under the Intercontinental, Libertador, and Llao Llao names; develops and sells residential properties, including apartment tower complexes; and acquires undeveloped land reserves for future development or sale. In addition, the company engages in the development and operation of stadium; and provision of ¡appa!, a digital customer loyalty system platform, for consumption in shopping malls, use of parking spaces, and redemption of corporate benefits. The company was incorporated in 1943 and is headquartered in Buenos Aires, Argentina. IRSA Inversiones y Representaciones Sociedad Anónima operates as a subsidiary of Cresud S.A.C.I.F. y A.

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.