Comparing Kennedy-Wilson (NYSE:KW) & Douglas Elliman (NYSE:DOUG)

Douglas Elliman (NYSE:DOUG) and Kennedy-Wilson (NYSE:KW) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Earnings and Valuation

This table compares Douglas Elliman and Kennedy-Wilson”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Elliman	$995.63 million	0.21	-$76.32 million	($0.70)	-3.39
Kennedy-Wilson	$531.40 million	2.53	-$33.00 million	($0.26)	-37.44

Kennedy-Wilson has lower revenue, but higher earnings than Douglas Elliman. Kennedy-Wilson is trading at a lower price-to-earnings ratio than Douglas Elliman, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Douglas Elliman and Kennedy-Wilson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Elliman	1	0	0	0	1.00
Kennedy-Wilson	2	1	0	0	1.33

Kennedy-Wilson has a consensus price target of $10.00, suggesting a potential upside of 2.72%. Given Kennedy-Wilson’s stronger consensus rating and higher possible upside, analysts clearly believe Kennedy-Wilson is more favorable than Douglas Elliman.

Insider & Institutional Ownership

59.6% of Douglas Elliman shares are held by institutional investors. Comparatively, 87.7% of Kennedy-Wilson shares are held by institutional investors. 6.8% of Douglas Elliman shares are held by company insiders. Comparatively, 20.3% of Kennedy-Wilson shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Douglas Elliman has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Kennedy-Wilson has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Douglas Elliman and Kennedy-Wilson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Douglas Elliman	-5.76%	-3.19%	-0.93%
Kennedy-Wilson	1.59%	19.00%	2.22%

Summary

Kennedy-Wilson beats Douglas Elliman on 10 of the 13 factors compared between the two stocks.

About Douglas Elliman

Douglas Elliman Inc. owns Douglas Elliman Realty, LLC, operating as a residential brokerage company in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.

About Kennedy-Wilson

Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company had ownership interests in multifamily units, office space, retail and industrial space, and a hotel. It is involved in the development, redevelopment, and entitlement of real estate properties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.