Foxtons Group (OTCMKTS:FXTGY) & FirstService (NASDAQ:FSV) Critical Analysis

FirstService (NASDAQ:FSV) and Foxtons Group (OTCMKTS:FXTGY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares FirstService and Foxtons Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FirstService	2.64%	18.69%	5.60%
Foxtons Group	N/A	N/A	N/A

Risk and Volatility

FirstService has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Foxtons Group has a beta of -0.44, meaning that its stock price is 144% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for FirstService and Foxtons Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstService	0	2	6	0	2.75
Foxtons Group	0	0	0	0	0.00

FirstService presently has a consensus price target of $211.67, suggesting a potential upside of 55.41%. Given FirstService’s stronger consensus rating and higher possible upside, equities analysts plainly believe FirstService is more favorable than Foxtons Group.

Dividends

FirstService pays an annual dividend of $1.10 per share and has a dividend yield of 0.8%. Foxtons Group pays an annual dividend of $0.01 per share and has a dividend yield of 1.0%. FirstService pays out 34.8% of its earnings in the form of a dividend. FirstService has increased its dividend for 7 consecutive years.

Institutional & Insider Ownership

69.4% of FirstService shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares FirstService and Foxtons Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstService	$5.50 billion	1.14	$145.05 million	$3.16	43.10
Foxtons Group	$227.49 million	0.66	$16.94 million	N/A	N/A

FirstService has higher revenue and earnings than Foxtons Group.

Summary

FirstService beats Foxtons Group on 12 of the 14 factors compared between the two stocks.

About FirstService

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.

About Foxtons Group

Foxtons Group plc, an estate agency, provides services to the residential property market in the United Kingdom. The company operates through three segments: Lettings, Sales, and Financial Services. The Lettings segment engages in letting and management of residential properties. The Sales segment sells residential properties. The Financial Services segment offers mortgages and related products. Foxtons Group plc was founded in 1981 and is headquartered in London, the United Kingdom.