Financial Analysis: Daito Trust Construction (OTCMKTS:DIFTY) & Ferrovial (NASDAQ:FER)

Ferrovial (NASDAQ:FER) and Daito Trust Construction (OTCMKTS:DIFTY) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Risk & Volatility

Ferrovial has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Daito Trust Construction has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Dividends

Ferrovial pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Daito Trust Construction pays an annual dividend of $0.17 per share and has a dividend yield of 3.0%. Daito Trust Construction pays out 130.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Ferrovial and Daito Trust Construction”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrovial	$9.90 billion	5.55	N/A	N/A	N/A
Daito Trust Construction	$12.10 billion	0.64	$619.46 million	$0.13	43.31

Daito Trust Construction has higher revenue and earnings than Ferrovial.

Insider and Institutional Ownership

22.3% of Ferrovial shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ferrovial and Daito Trust Construction, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrovial	0	2	3	1	2.83
Daito Trust Construction	0	0	0	0	0.00

Ferrovial presently has a consensus price target of $75.30, suggesting a potential upside of 1.43%. Given Ferrovial’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ferrovial is more favorable than Daito Trust Construction.

Profitability

This table compares Ferrovial and Daito Trust Construction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferrovial	N/A	N/A	N/A
Daito Trust Construction	N/A	N/A	N/A

Summary

Ferrovial beats Daito Trust Construction on 7 of the 10 factors compared between the two stocks.

About Ferrovial

Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.

About Daito Trust Construction

Daito Trust Construction Co.,Ltd. designs, constructs, and rents apartments and condominiums in Japan. It operates through three segments: Construction, Real Estate, and Finance. The company design and construct rental housing and other structure construction; ironwork and construction; building management and renovation, and whole building leasing; rental housing tenant guarantor services; advertising; and LP gas supply businesses. Further, the company operates day service centers and childcare facilities; operates hotels in Malaysia; and bridge financing for general contractors. Additionally, it sells short-term insurance; offers credit card settlements services; rental apartment and condominium brokering services; provides real estate management and asset succession consulting services; and offers document shipping and destruction, printing, and administrative services. The company also engages in development and sale of investment-type apartment properties, and management of facility reservation portal sites. Daito Trust Construction Co.,Ltd. was incorporated in 1974 and is headquartered in Tokyo, Japan.