Howard Hughes (HHH) and The Competition Critical Analysis

Howard Hughes (NYSE:HHH) is one of 329 publicly-traded companies in the “Real Estate Management & Development” industry, but how does it compare to its rivals? We will compare Howard Hughes to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, dividends, earnings, profitability and valuation.

Insider and Institutional Ownership

93.8% of Howard Hughes shares are owned by institutional investors. Comparatively, 32.4% of shares of all “Real Estate Management & Development” companies are owned by institutional investors. 47.7% of Howard Hughes shares are owned by company insiders. Comparatively, 27.0% of shares of all “Real Estate Management & Development” companies are owned 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.

Profitability

This table compares Howard Hughes and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Howard Hughes	12.31%	7.51%	2.41%
Howard Hughes Competitors	-264.40%	-682.90%	-1.12%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Howard Hughes and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Howard Hughes	0	2	1	1	2.75
Howard Hughes Competitors	1583	4692	7451	209	2.45

Howard Hughes currently has a consensus price target of $81.00, suggesting a potential downside of 5.28%. As a group, “Real Estate Management & Development” companies have a potential upside of 19.81%. Given Howard Hughes’ rivals higher probable upside, analysts plainly believe Howard Hughes has less favorable growth aspects than its rivals.

Risk and Volatility

Howard Hughes has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Howard Hughes’ rivals have a beta of -0.21, suggesting that their average share price is 121% less volatile than the S&P 500.

Earnings & Valuation

This table compares Howard Hughes and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Howard Hughes	$1.47 billion	$123.90 million	33.80
Howard Hughes Competitors	$2.68 billion	-$400.38 million	25.56

Howard Hughes’ rivals have higher revenue, but lower earnings than Howard Hughes. Howard Hughes is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Howard Hughes beats its rivals on 9 of the 13 factors compared.

Howard Hughes Company Profile

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.