Head to Head Survey: FirstService (NASDAQ:FSV) versus Cyrela Brazil Realty (OTCMKTS:CYRBY)

Cyrela Brazil Realty (OTCMKTS:CYRBY) and FirstService (NASDAQ:FSV) are both mid-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Cyrela Brazil Realty and FirstService, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyrela Brazil Realty	0	1	0	0	2.00
FirstService	0	3	8	0	2.73

FirstService has a consensus target price of $183.70, suggesting a potential upside of 34.49%. Given FirstService’s stronger consensus rating and higher probable upside, analysts clearly believe FirstService is more favorable than Cyrela Brazil Realty.

Volatility and Risk

Cyrela Brazil Realty has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, FirstService has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Cyrela Brazil Realty and FirstService’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyrela Brazil Realty	20.58%	17.27%	7.75%
FirstService	2.88%	18.07%	5.59%

Dividends

Cyrela Brazil Realty pays an annual dividend of $0.44 per share and has a dividend yield of 6.5%. FirstService pays an annual dividend of $1.22 per share and has a dividend yield of 0.9%. Cyrela Brazil Realty pays out 46.8% of its earnings in the form of a dividend. FirstService pays out 34.6% 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. FirstService has increased its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Cyrela Brazil Realty and FirstService”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyrela Brazil Realty	$1.69 billion	1.55	$359.41 million	$0.94	7.25
FirstService	$5.50 billion	1.09	$145.05 million	$3.53	38.69

Cyrela Brazil Realty has higher earnings, but lower revenue than FirstService. Cyrela Brazil Realty is trading at a lower price-to-earnings ratio than FirstService, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

69.3% of FirstService shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

FirstService beats Cyrela Brazil Realty on 11 of the 16 factors compared between the two stocks.

About Cyrela Brazil Realty

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.

About FirstService

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.