Analyzing China Evergrande Group (OTCMKTS:EGRNF) & UOL Group (OTCMKTS:UOLGY)

China Evergrande Group (OTCMKTS:EGRNF) and UOL Group (OTCMKTS:UOLGY) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares China Evergrande Group and UOL Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Evergrande Group	N/A	N/A	N/A	$0.87	N/A
UOL Group	N/A	N/A	N/A	$3.19	9.41

China Evergrande Group is trading at a lower price-to-earnings ratio than UOL Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

8.2% of China Evergrande Group shares are owned by institutional investors. Comparatively, 0.0% of UOL Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for China Evergrande Group and UOL Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Evergrande Group	0	0	0	0	0.00
UOL Group	0	1	0	1	3.00

Given China Evergrande Group’s higher probable upside, analysts clearly believe China Evergrande Group is more favorable than UOL Group.

Profitability

This table compares China Evergrande Group and UOL Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Evergrande Group	N/A	N/A	N/A
UOL Group	N/A	N/A	N/A

Dividends

China Evergrande Group pays an annual dividend of $0.57 per share. UOL Group pays an annual dividend of $0.54 per share and has a dividend yield of 1.8%. China Evergrande Group pays out 65.7% of its earnings in the form of a dividend. UOL Group pays out 16.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. UOL Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

UOL Group beats China Evergrande Group on 6 of the 8 factors compared between the two stocks.

About China Evergrande Group

China Evergrande Group, an investment holding company, primarily engages in the property development business in the People’s Republic of China. It operates through Property Development, Property Investment, Property Management Services, and Other Businesses segments. The company offers property development, investment, and management services; and engages in new energy vehicle, cultural tourism, and health industry business. It also provides sale and manufacturing of smart mobility; and development and sale of health and living projects, as well as develops and operates real estate. The company was incorporated in 2006 and is headquartered in Guangzhou, the People’s Republic of China. China Evergrande Group operates as a subsidiary of Xin Xin (BVI) Limited.

About UOL Group

UOL Group Limited engages in property and hospitality activities in Singapore, Australia, the United Kingdom, China, Malaysia, Indonesia, Thailand, Vietnam, Myanmar, Cambodia, Bangladesh, Japan, the United States, Canada, Kenya, and internationally. The company operates through Property Development, Property Investments, Hotel Operations, Investments, Technology Operations, and Management Services segments. It develops residential properties; leases commercial properties and serviced suites; owns and/or manages hotels under the Pan Pacific, PARKROYAL COLLECTION, and PARKROYAL brands in Asia, Oceania, Europe, North America, and Africa; and invests in quoted and unquoted financial assets. The company also distributes computers and related products; and provides system integration and networking infrastructure services, as well as hotel management, and project management and related services. The company was formerly known as United Overseas Land Limited and changed its name to UOL Group Limited in 2006. UOL Group Limited was incorporated in 1963 and is based in Singapore.