The RMR Group (NASDAQ:RMR – Get Free Report) and Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
42.3% of The RMR Group shares are owned by institutional investors. 54.9% of The RMR Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for The RMR Group and Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The RMR Group | 0 | 0 | 0 | 1 | 4.00 |
| Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares The RMR Group and Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The RMR Group | 2.56% | 5.01% | 3.10% |
| Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd | N/A | N/A | N/A |
Earnings & Valuation
This table compares The RMR Group and Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The RMR Group | $897.20 million | 0.56 | $23.13 million | $1.17 | 13.58 |
| Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd | $133.50 million | 4.29 | $74.68 million | N/A | N/A |
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has lower revenue, but higher earnings than The RMR Group.
Dividends
The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 11.3%. Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd pays an annual dividend of $0.17 per share and has a dividend yield of 9.1%. The RMR Group pays out 153.8% 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 increased 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.
Volatility and Risk
The RMR Group has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Summary
The RMR Group beats Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd on 12 of the 15 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 Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd
Shenzhen Investment Holdings Bay Area Development Company Limited, an investment holding company, initiates, promotes, develops, and operates toll expressways and bridges in the People’s Republic of China. The company operates through Coastal Expressway (Shenzhen Section), GS Superhighway, GZ West Superhighway, and Xintang Interchange segments. It also operates toll expressway projects comprising Guangzhou-Shenzhen superhighway and Guangzhou-Zhuhai West superhighway. In addition, the company is involved in the land development and utilization project activities. The company was formerly known as Hopewell Highway Infrastructure Limited. Shenzhen Investment Holdings Bay Area Development Company Limited was incorporated in 2003 and is based in Wan Chai, Hong Kong. The company is a subsidiary of Shenzhen Investment International Capital Holdings Infrastructure Co., Ltd.
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