Analyzing Soho China (OTCMKTS:SOHOF) and Five Point (NYSE:FPH)

Five Point (NYSE:FPH) and Soho China (OTCMKTS:SOHOF) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Institutional and Insider Ownership

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

Risk and Volatility

Five Point has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Soho China has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Five Point and Soho China, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Point	0	0	2	0	3.00
Soho China	0	0	0	0	0.00

Profitability

This table compares Five Point and Soho China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five Point	48.56%	4.24%	2.99%
Soho China	N/A	N/A	N/A

Earnings & Valuation

This table compares Five Point and Soho China”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five Point	$193.90 million	4.30	$68.30 million	$1.30	4.37
Soho China	$214.29 million	1.57	-$15.78 million	N/A	N/A

Five Point has higher earnings, but lower revenue than Soho China.

Summary

Five Point beats Soho China on 10 of the 11 factors compared between the two stocks.

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.

About Soho China

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in the People's Republic of China. It also operates serviced hotels. The company was founded in 1995 and is headquartered in Beijing, China.