Santa Fe Financial (OTCMKTS:SFEF) and Kennedy-Wilson (NYSE:KW) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Earnings & Valuation
This table compares Santa Fe Financial and Kennedy-Wilson’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Santa Fe Financial||$57.43 million||0.79||$1.49 million||N/A||N/A|
|Kennedy-Wilson||$773.50 million||3.85||$150.00 million||N/A||N/A|
Kennedy-Wilson has higher revenue and earnings than Santa Fe Financial.
Institutional and Insider Ownership
82.9% of Kennedy-Wilson shares are held by institutional investors. 85.9% of Santa Fe Financial shares are held by company insiders. Comparatively, 14.7% of Kennedy-Wilson shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Santa Fe Financial and Kennedy-Wilson, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Santa Fe Financial||0||0||0||0||N/A|
Kennedy-Wilson has a consensus price target of $25.70, indicating a potential upside of 23.16%. Given Kennedy-Wilson’s higher possible upside, analysts clearly believe Kennedy-Wilson is more favorable than Santa Fe Financial.
This table compares Santa Fe Financial and Kennedy-Wilson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Santa Fe Financial||8.19%||-0.65%||0.68%|
Risk & Volatility
Santa Fe Financial has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, Kennedy-Wilson has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Kennedy-Wilson pays an annual dividend of $0.84 per share and has a dividend yield of 4.0%. Santa Fe Financial does not pay a dividend. Kennedy-Wilson has raised its dividend for 8 consecutive years.
Kennedy-Wilson beats Santa Fe Financial on 12 of the 14 factors compared between the two stocks.
About Santa Fe Financial
Santa Fe Financial Corporation owns and operates a hotel property in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel property consists of 544 guest rooms and luxury suites, and related facilities, including a five level underground parking garage. The company also owns and operates a 27-unit and a 2-unit multi-family apartment complex located in Los Angeles, California, as well as owns land for development located in Maui, Hawaii; and invests in marketable securities, such as corporate equities and bonds, and income producing securities. The company was formerly known as Tri Financial Corporation and changed its name to Santa Fe Financial Corporation in September 1970. The company was founded in 1967 and is based in Los Angeles, California. Santa Fe Financial Corporation is a subsidiary of The InterGroup Corporation.
Kennedy-Wilson Holdings, Inc. is a global real estate investment company, which engages in the ownership, operation, and investment in real estate through its investment platform. It operates through the following business segments: KW Investments, and KW Investment Management and Real Estate Services (IMRES). The KW Investments segment invests the capital of the company in real estate assets and loans secured by real estate either on its own or with strategic partners through publicly traded companies, joint ventures, separate accounts, and funds. The IMRES segment includes the investment management platform of the company along with its property services, research, brokerage and auction, and conventional sales divisions. The company was founded in 1977 and is headquartered in Beverly Hills, CA.
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