Greentown China (OTCMKTS:GTWCF) and Country Garden (OTCMKTS:CTRYF) Critical Analysis

Greentown China (OTCMKTS:GTWCF) and Country Garden (OTCMKTS:CTRYF) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Greentown China and Country Garden’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greentown China	N/A	N/A	N/A
Country Garden	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Greentown China and Country Garden, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greentown China	0	0	1	0	3.00
Country Garden	0	0	0	0	0.00

Given Country Garden’s higher possible upside, analysts plainly believe Country Garden is more favorable than Greentown China.

Dividends

Greentown China pays an annual dividend of $0.43 per share and has a dividend yield of 45.1%. Country Garden pays an annual dividend of $0.17 per share. Greentown China pays out 27.9% of its earnings in the form of a dividend. Country Garden pays out 32.0% 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. Greentown China is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Greentown China and Country Garden”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greentown China	N/A	N/A	N/A	$1.55	0.62
Country Garden	N/A	N/A	N/A	$0.52	N/A

Country Garden is trading at a lower price-to-earnings ratio than Greentown China, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

5.9% of Greentown China shares are held by institutional investors. Comparatively, 3.8% of Country Garden shares are held by institutional investors. 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.

Summary

Greentown China beats Country Garden on 6 of the 8 factors compared between the two stocks.

About Greentown China

Greentown China Holdings Limited, an investment holding company, engages in the property development and related business in China. It operates through Property Development, Hotel Operations, Property Investment, Project Management, and Other segments. The company develops and sells residential properties. It also offers investment and asset management; project management; technology research and development; and design and decoration services. In addition, the company constructs, develops, and operates education projects; operates hotels and clubs; and invests in and rents properties, as well as sells construction materials. The company was founded in 1995 and is headquartered in Hangzhou, the People's Republic of China.

About Country Garden

Country Garden Holdings Company Limited, an investment holding company, invests, develops, and constructs real estate properties primarily in Mainland China. The company operates in two segments, Property Development and Construction. It develops residential projects, such as townhouses and condominiums; and car parks and retail shops. The company also develops, operates, and manages hotels. In addition, it researches and develops robots; sells electronic hardware and food; and provides interior decoration, agriculture, landscape design, investment and management consulting, cultural activity planning, and real estate consulting services. Country Garden Holdings Company Limited was founded in 1992 and is based in Foshan, the People's Republic of China. Country Garden Holdings Company Limited is a subsidiary of Concrete Win Limited.