Contrasting Alexander & Baldwin (ALEX) and The Competition

Alexander & Baldwin (NYSE: ALEX) is one of 65 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it contrast to its competitors? We will compare Alexander & Baldwin to related businesses based on the strength of its dividends, profitability, valuation, earnings, analyst recommendations, institutional ownership and risk.

Volatility and Risk

Alexander & Baldwin has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Alexander & Baldwin’s competitors have a beta of 0.62, indicating that their average stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Alexander & Baldwin and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexander & Baldwin 0 0 1 0 3.00
Alexander & Baldwin Competitors 152 369 785 9 2.50

Alexander & Baldwin currently has a consensus price target of $50.00, suggesting a potential upside of 78.70%. As a group, “Real Estate Development & Operations” companies have a potential upside of 12.77%. Given Alexander & Baldwin’s stronger consensus rating and higher probable upside, analysts plainly believe Alexander & Baldwin is more favorable than its competitors.

Institutional and Insider Ownership

78.2% of Alexander & Baldwin shares are owned by institutional investors. Comparatively, 37.6% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 7.6% of Alexander & Baldwin shares are owned by insiders. Comparatively, 40.8% of shares of all “Real Estate Development & Operations” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Alexander & Baldwin and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alexander & Baldwin 4.15% 3.89% 2.18%
Alexander & Baldwin Competitors -5.63% 0.44% 1.47%

Valuation and Earnings

This table compares Alexander & Baldwin and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alexander & Baldwin $387.50 million -$10.20 million 75.62
Alexander & Baldwin Competitors $456.96 million $35.84 million 1,357.24

Alexander & Baldwin’s competitors have higher revenue and earnings than Alexander & Baldwin. Alexander & Baldwin is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Alexander & Baldwin pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. Alexander & Baldwin pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Real Estate Development & Operations” companies pay a dividend yield of 1.6% and pay out 42.7% of their earnings in the form of a dividend. Alexander & Baldwin has raised its dividend for 4 consecutive years. Alexander & Baldwin lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Alexander & Baldwin beats its competitors on 8 of the 15 factors compared.

Alexander & Baldwin Company Profile

Alexander & Baldwin, Inc. (A&B) is a real estate company. The Company operates through three segments: Commercial Real Estate, Land Operations, and Materials and Construction. In addition to its 15 retail centers in Hawaii, the Company owned seven industrial assets, seven office properties and a portfolio of urban ground leases comprising 106 acres in Hawaii, as of December 31, 2016. On the United States mainland, the Company owned seven remaining commercial assets, as of December 31, 2016. The Commercial Real Estate segment owns, operates and manages retail, industrial and office properties in Hawaii and on the Mainland. The Land Operations segment manages the Company’s land and real estate-related assets and deploys these assets to their use. The Materials and Construction segment performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells basalt aggregate, and produces and sells asphaltic and ready-mix concrete.

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