IRSA Inversiones Y Representaciones (NYSE:IRS) & Alset (NASDAQ:AEI) Critical Contrast

IRSA Inversiones Y Representaciones (NYSE:IRS) and Alset (NASDAQ:AEI) are both small-cap real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Risk and Volatility

IRSA Inversiones Y Representaciones has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Alset has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares IRSA Inversiones Y Representaciones and Alset”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IRSA Inversiones Y Representaciones	$465.14 million	2.78	$278.34 million	$3.29	4.65
Alset	$4.47 million	7.27	-$47.42 million	($1.62)	-0.52

IRSA Inversiones Y Representaciones has higher revenue and earnings than Alset. Alset is trading at a lower price-to-earnings ratio than IRSA Inversiones Y Representaciones, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for IRSA Inversiones Y Representaciones and Alset, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IRSA Inversiones Y Representaciones	0	1	0	1	3.00
Alset	1	0	0	0	1.00

IRSA Inversiones Y Representaciones currently has a consensus target price of $23.00, indicating a potential upside of 50.34%. Given IRSA Inversiones Y Representaciones’ stronger consensus rating and higher probable upside, equities analysts clearly believe IRSA Inversiones Y Representaciones is more favorable than Alset.

Profitability

This table compares IRSA Inversiones Y Representaciones and Alset’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IRSA Inversiones Y Representaciones	58.90%	17.99%	8.69%
Alset	-951.44%	-29.90%	-28.92%

Institutional and Insider Ownership

45.5% of IRSA Inversiones Y Representaciones shares are held by institutional investors. Comparatively, 2.7% of Alset shares are held by institutional investors. 25.1% of IRSA Inversiones Y Representaciones shares are held by company insiders. Comparatively, 90.3% of Alset shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

IRSA Inversiones Y Representaciones beats Alset on 12 of the 14 factors compared between the two stocks.

About IRSA Inversiones Y Representaciones

IRSA Inversiones y Representaciones Sociedad Anónima, together with its subsidiaries, engages in the diversified real estate activities in Argentina. It operates through five segments: Shopping Malls, Offices, Hotels, Sales and Developments, and Others. The company is involved in the acquisition, development, and operation of shopping malls, office buildings, and other non-shopping mall properties primarily for rental purposes. It also acquires and operates luxury hotels and resorts under the Intercontinental, Libertador, and Llao Llao names; develops and sells residential properties, including apartment tower complexes; and acquires undeveloped land reserves for future development or sale. In addition, the company engages in the development and operation of stadium; and provision of ¡appa!, a digital customer loyalty system platform, for consumption in shopping malls, use of parking spaces, and redemption of corporate benefits. The company was incorporated in 1943 and is headquartered in Buenos Aires, Argentina. IRSA Inversiones y Representaciones Sociedad Anónima operates as a subsidiary of Cresud S.A.C.I.F. y A.

About Alset

Alset Inc. engages in the real estate development, financial services, digital transformation technologies, biohealth activities, and consumer products businesses in the United States, Singapore, Hong Kong, Australia, and South Korea. It operates through four segments: Real Estate, Digital Transformation Technology, Biohealth, and Other Business Activities segments. The Real Estate segment develops property projects and participates in third-party property development projects; and owns, operates, and manages real estate development projects with a focus on land subdivision developments and house rental projects. Its Digital Transformation Technology segment provides support, implementation, and development services with various technologies, including blockchain, e-commerce, social media, and artificial intelligent customer service application and metaverse services. Its technology platform focuses on business-to-business solutions, such as communications and workflow through instant messaging systems, social media, e-commerce and payment systems, direct marketing platforms, e-real estate, brand protection, and counterfeit and fraud detection; and mobile application product development and other businesses, including information technology services to end-users, service providers, and other commercial users through multiple platforms. The Biohealth segment engages in developing, researching, testing, manufacturing, licensing, and distributing biohealth products and services. Its Other Business Activities segment offers corporate strategy and business development, asset management, corporate restructuring, and leveraged buy-out expertise services. It operates cafes in Singapore and South Korea. The company was formerly known as Alset EHome International Inc. and changed its name to Alset Inc. in October 2022. The company was incorporated in 2018 and is headquartered in Bethesda, Maryland.