Financial Analysis: Sumitomo Realty & Development (SURDF) vs. The Competition

Sumitomo Realty & Development (OTCMKTS:SURDF) is one of 330 publicly-traded companies in the “Real Estate Management & Development” industry, but how does it weigh in compared to its competitors? We will compare Sumitomo Realty & Development to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sumitomo Realty & Development and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Realty & Development	1	0	0	0	1.00
Sumitomo Realty & Development Competitors	1431	4272	6974	194	2.46

As a group, “Real Estate Management & Development” companies have a potential upside of 25.38%. Given Sumitomo Realty & Development’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Sumitomo Realty & Development has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

19.6% of Sumitomo Realty & Development shares are held by institutional investors. Comparatively, 32.7% of shares of all “Real Estate Management & Development” companies are held by institutional investors. 27.3% of shares of all “Real Estate Management & Development” companies are held by 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.

Earnings and Valuation

This table compares Sumitomo Realty & Development and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sumitomo Realty & Development	N/A	N/A	0.17
Sumitomo Realty & Development Competitors	$2.68 billion	-$394.99 million	-20.50

Sumitomo Realty & Development’s competitors have higher revenue, but lower earnings than Sumitomo Realty & Development. Sumitomo Realty & Development is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Sumitomo Realty & Development and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Realty & Development	N/A	N/A	N/A
Sumitomo Realty & Development Competitors	-247.19%	-677.28%	-1.62%

Dividends

Sumitomo Realty & Development pays an annual dividend of $15.94 per share and has a dividend yield of 69.4%. Sumitomo Realty & Development pays out 11.5% of its earnings in the form of a dividend. As a group, “Real Estate Management & Development” companies pay a dividend yield of 5.0% and pay out 47.9% of their earnings in the form of a dividend. Sumitomo Realty & Development is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Sumitomo Realty & Development competitors beat Sumitomo Realty & Development on 7 of the 13 factors compared.

Sumitomo Realty & Development Company Profile

Sumitomo Realty & Development Co., Ltd. engages in the real estate business in Japan. It develops and leases office buildings, rental apartments, etc.; develops and sells condominium units, detached houses, etc.; and develops, leases, and sells properties, as well as operates and manages hotels, event halls, retail facilities, land lots, etc. The company also offers real estate brokerage services, as well as engages in the fitness and restaurant businesses. In addition, it provides monthly parking lot, house cleaning, interior designing, catering, convenience stores, and insurance agency services. It serves corporate and private customers. The company was formerly known as Izumi Real Estate Co., Ltd. and changed its name to Sumitomo Realty & Development Co., Ltd. in 1957. Sumitomo Realty & Development Co., Ltd. was incorporated in 1949 and is headquartered in Tokyo, Japan.