Financial Analysis: Sun Hung Kai Properties (OTCMKTS:SUHJY) and Brookfield (NYSE:BN)

Brookfield (NYSE:BN) and Sun Hung Kai Properties (OTCMKTS:SUHJY) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

61.6% of Brookfield shares are owned by institutional investors. 11.0% of Brookfield shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Brookfield and Sun Hung Kai Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield	$86.01 billion	1.36	$641.00 million	$0.36	131.21
Sun Hung Kai Properties	$10.23 billion	3.96	$2.48 billion	N/A	N/A

Sun Hung Kai Properties has lower revenue, but higher earnings than Brookfield.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Brookfield and Sun Hung Kai Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield	1	1	10	2	2.93
Sun Hung Kai Properties	0	2	1	0	2.33

Brookfield currently has a consensus price target of $53.87, indicating a potential upside of 14.04%. Given Brookfield’s stronger consensus rating and higher possible upside, research analysts clearly believe Brookfield is more favorable than Sun Hung Kai Properties.

Volatility and Risk

Brookfield has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Sun Hung Kai Properties has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Profitability

This table compares Brookfield and Sun Hung Kai Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield	1.34%	3.92%	1.24%
Sun Hung Kai Properties	N/A	N/A	N/A

Dividends

Brookfield pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Sun Hung Kai Properties pays an annual dividend of $0.68 per share and has a dividend yield of 4.9%. Brookfield pays out 66.7% of its earnings in the form of a dividend. Brookfield has increased its dividend for 2 consecutive years.

Summary

Brookfield beats Sun Hung Kai Properties on 12 of the 16 factors compared between the two stocks.

About Brookfield

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It typically makes investments in sizeable, premier assets across geographies and asset classes. It invests both its own capital as well as capital from other investors. Within private equity and venture capital, it focuses on acquisition, early ventures, control buyouts and financially distressed, buyouts and corporate carve-outs, recapitalizations, convertible, senior and mezzanine financings, operational and capital structure restructuring, strategic re-direction, turnaround, and under-performing midmarket companies. It invests in both public debt and equity markets. It invests in private equity sectors with focus on Business Services include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate; Industrials include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development; and Residential/ infrastructure services. It targets companies which likely possess underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors. It invests globally with focus on North America including Brazil, the United States, Canada; Europe; and Australia; and Asia-Pacific. The firm considers equity investments in the range of $2 million to $500 million. It has a four-year investment period and a 10-year term with two one-year extensions. The firm prefers to take minority stake and majority stake. Brookfield Corporation was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.

About Sun Hung Kai Properties

Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, and internationally. It develops, sells, and leases properties, including residential estates, offices, shopping malls, industrial offices, and hotels and serviced suites. The company also provides property management services; construction-related services, including landscaping, electrical and mechanical installation, production and installation of wooden doors, and construction plant and machinery leasing; and insurance products to individuals and businesses comprising householder’s comprehensive, fire, employees’ compensation, travel, personal accident, motor vehicles, contractors’ all risks, third party liability, and property all risks. In addition, the company offers voice, multimedia, and mobile broadband services; and data center services, including infrastructure, facility management, server co-location, and other value-added services. Further, it manages car parks, tunnels, and toll roads; facilities management and value-added services; general insurance; offers transport facilities for private and the public sectors; operates an expressway; provides public bus services; and offers airport freight forwarding and aviation support services. Additionally, the company provides container handling and storage, container freight station, and other port-related services; operates department stores and supermarkets; and offers mortgage and other loan financing facilities, as well as offers asset and project management, architectural and engineering, cleaning, and secretarial services. It also engages in the club and road management business. The company was formerly known as Sun Hung Kai (Holdings) Limited and changed its name to Sun Hung Kai Properties Limited in March 1973. The company was incorporated in 1972 and is based in Wan Chai, Hong Kong.