Head-To-Head Review: Henderson Land Development (OTCMKTS:HLDCY) and The RMR Group (NASDAQ:RMR)

The RMR Group (NASDAQ:RMR) and Henderson Land Development (OTCMKTS:HLDCY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Volatility and Risk

The RMR Group has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Henderson Land Development has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for The RMR Group and Henderson Land Development, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The RMR Group	0	2	1	1	2.75
Henderson Land Development	0	0	1	1	3.50

The RMR Group currently has a consensus target price of $20.50, suggesting a potential upside of 22.39%. Given The RMR Group’s higher possible upside, research analysts plainly believe The RMR Group is more favorable than Henderson Land Development.

Dividends

The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 10.7%. Henderson Land Development pays an annual dividend of $0.10 per share and has a dividend yield of 2.5%. The RMR Group pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has raised its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares The RMR Group and Henderson Land Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The RMR Group	3.52%	4.03%	2.44%
Henderson Land Development	N/A	N/A	N/A

Earnings and Valuation

This table compares The RMR Group and Henderson Land Development”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The RMR Group	$700.28 million	0.77	$17.60 million	$1.38	12.14
Henderson Land Development	$2.63 billion	7.42	$807.15 million	N/A	N/A

Henderson Land Development has higher revenue and earnings than The RMR Group.

Insider and Institutional Ownership

42.3% of The RMR Group shares are owned by institutional investors. 54.7% of The RMR Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

The RMR Group beats Henderson Land Development on 9 of the 14 factors compared between the two stocks.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

About Henderson Land Development

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Hotel Room Operation, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Hotel Room Operation segment operates hotel properties. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials. It also engages in food and beverage, and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.