The RMR Group (NASDAQ:RMR) versus Henderson Land Development (OTCMKTS:HLDCY) Head-To-Head Comparison

Henderson Land Development (OTCMKTS:HLDCY) and The RMR Group (NASDAQ:RMR) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Henderson Land Development and The RMR Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henderson Land Development	0	0	1	1	3.50
The RMR Group	0	2	1	1	2.75

The RMR Group has a consensus target price of $20.50, suggesting a potential upside of 19.81%. Given The RMR Group’s higher possible upside, analysts plainly believe The RMR Group is more favorable than Henderson Land Development.

Risk & Volatility

Henderson Land Development has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, The RMR Group has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Henderson Land Development and The RMR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henderson Land Development	N/A	N/A	N/A
The RMR Group	3.52%	4.03%	2.44%

Valuation and Earnings

This table compares Henderson Land Development and The RMR Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henderson Land Development	$2.63 billion	7.87	$807.15 million	N/A	N/A
The RMR Group	$700.28 million	0.78	$17.60 million	$1.38	12.40

Henderson Land Development has higher revenue and earnings than The RMR Group.

Insider and Institutional Ownership

42.3% of The RMR Group shares are held by institutional investors. 54.7% of The RMR Group shares are held 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.

Dividends

Henderson Land Development pays an annual dividend of $0.10 per share and has a dividend yield of 2.3%. The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 10.5%. The RMR Group pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has raised its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

The RMR Group beats Henderson Land Development on 9 of the 14 factors compared between the two stocks.

About Henderson Land Development

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Hotel Room Operation, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Hotel Room Operation segment operates hotel properties. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials. It also engages in food and beverage, and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.