Financial Contrast: Ferrovial (NASDAQ:FER) and Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY)

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY) and Ferrovial (NASDAQ:FER) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Insider & Institutional Ownership

22.3% of Ferrovial shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Ferrovial has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Earnings and Valuation

This table compares Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and Ferrovial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	$133.50 million	5.54	$74.68 million	N/A	N/A
Ferrovial	$10.89 billion	4.26	N/A	N/A	N/A

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has higher earnings, but lower revenue than Ferrovial.

Profitability

This table compares Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and Ferrovial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	N/A	N/A	N/A
Ferrovial	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and Ferrovial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	0	0	0	0	0.00
Ferrovial	0	4	3	0	2.43

Ferrovial has a consensus target price of $73.12, indicating a potential upside of 15.67%. Given Ferrovial’s stronger consensus rating and higher probable upside, analysts plainly believe Ferrovial is more favorable than Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd.

Dividends

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd pays an annual dividend of $0.17 per share and has a dividend yield of 7.1%. Ferrovial pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%.

Summary

Ferrovial beats Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd on 5 of the 8 factors compared between the two stocks.

About Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd

Shenzhen Investment Holdings Bay Area Development Company Limited, an investment holding company, initiates, promotes, develops, and operates toll expressways and bridges in the People’s Republic of China. The company operates through Coastal Expressway (Shenzhen Section), GS Superhighway, GZ West Superhighway, and Xintang Interchange segments. It also operates toll expressway projects comprising Guangzhou-Shenzhen superhighway and Guangzhou-Zhuhai West superhighway. In addition, the company is involved in the land development and utilization project activities. The company was formerly known as Hopewell Highway Infrastructure Limited. Shenzhen Investment Holdings Bay Area Development Company Limited was incorporated in 2003 and is based in Wan Chai, Hong Kong. The company is a subsidiary of Shenzhen Investment International Capital Holdings Infrastructure Co., Ltd.

About Ferrovial

Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.