Analyzing Sumitomo Realty & Development (SURDF) and The Competition

Sumitomo Realty & Development (OTCMKTS:SURDF) is one of 330 publicly-traded companies in the “Real Estate Management & Development” industry, but how does it weigh in compared to its peers? We will compare Sumitomo Realty & Development to related companies based on the strength of its valuation, risk, analyst recommendations, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

19.6% of Sumitomo Realty & Development shares are held by institutional investors. Comparatively, 32.7% of shares of all “Real Estate Management & Development” companies are held by institutional investors. 27.3% of shares of all “Real Estate Management & Development” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Sumitomo Realty & Development and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Realty & Development	N/A	N/A	N/A
Sumitomo Realty & Development Competitors	-244.78%	-694.11%	-1.41%

Valuation & Earnings

This table compares Sumitomo Realty & Development and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sumitomo Realty & Development	N/A	N/A	0.16
Sumitomo Realty & Development Competitors	$2.68 billion	-$394.99 million	9.33

Sumitomo Realty & Development’s peers have higher revenue, but lower earnings than Sumitomo Realty & Development. Sumitomo Realty & Development is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for Sumitomo Realty & Development and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Realty & Development	1	0	0	0	1.00
Sumitomo Realty & Development Competitors	1438	4282	6984	195	2.46

As a group, “Real Estate Management & Development” companies have a potential upside of 24.24%. Given Sumitomo Realty & Development’s peers stronger consensus rating and higher probable upside, analysts plainly believe Sumitomo Realty & Development has less favorable growth aspects than its peers.

Dividends

Sumitomo Realty & Development pays an annual dividend of $15.94 per share and has a dividend yield of 70.8%. Sumitomo Realty & Development pays out 11.5% of its earnings in the form of a dividend. As a group, “Real Estate Management & Development” companies pay a dividend yield of 4.9% and pay out 47.8% of their earnings in the form of a dividend. Sumitomo Realty & Development is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Sumitomo Realty & Development peers beat Sumitomo Realty & Development on 8 of the 13 factors compared.

Sumitomo Realty & Development Company Profile

Sumitomo Realty & Development Co., Ltd. engages in the real estate business in Japan. It develops and leases office buildings, rental apartments, etc.; develops and sells condominium units, detached houses, etc.; and develops, leases, and sells properties, as well as operates and manages hotels, event halls, retail facilities, land lots, etc. The company also offers real estate brokerage services, as well as engages in the fitness and restaurant businesses. In addition, it provides monthly parking lot, house cleaning, interior designing, catering, convenience stores, and insurance agency services. It serves corporate and private customers. The company was formerly known as Izumi Real Estate Co., Ltd. and changed its name to Sumitomo Realty & Development Co., Ltd. in 1957. Sumitomo Realty & Development Co., Ltd. was incorporated in 1949 and is headquartered in Tokyo, Japan.