Head-To-Head Analysis: Alexander’s (NYSE:ALX) versus Howard Hughes (NYSE:HHH)

Alexander’s (NYSE:ALX) and Howard Hughes (NYSE:HHH) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Alexander’s and Howard Hughes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander’s	22.10%	22.11%	3.62%
Howard Hughes	-49.52%	-0.33%	-0.10%

Institutional & Insider Ownership

32.0% of Alexander’s shares are owned by institutional investors. Comparatively, 93.8% of Howard Hughes shares are owned by institutional investors. 26.3% of Alexander’s shares are owned by insiders. Comparatively, 33.0% of Howard Hughes shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Alexander’s has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Howard Hughes has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Valuation & Earnings

This table compares Alexander’s and Howard Hughes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$233.14 million	4.94	$102.41 million	$20.92	10.77
Howard Hughes	$1.02 billion	3.69	-$550.95 million	($10.92)	-6.88

Alexander’s has higher earnings, but lower revenue than Howard Hughes. Howard Hughes is trading at a lower price-to-earnings ratio than Alexander’s, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Alexander’s and Howard Hughes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	0	0	0	1.00
Howard Hughes	0	0	2	0	3.00

Alexander’s currently has a consensus target price of $125.00, indicating a potential downside of 44.52%. Howard Hughes has a consensus target price of $82.00, indicating a potential upside of 9.12%. Given Howard Hughes’ stronger consensus rating and higher possible upside, analysts clearly believe Howard Hughes is more favorable than Alexander’s.

About Alexander’s

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.

About Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.