Forest City Realty Trust (FCE.A) and IRSA Propiedades Comerciales (IRCP) Critical Survey

IRSA Propiedades Comerciales (NASDAQ:IRCP) and Forest City Realty Trust (NYSE:FCE.A) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Volatility & Risk

IRSA Propiedades Comerciales has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Forest City Realty Trust has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Institutional & Insider Ownership

6.7% of IRSA Propiedades Comerciales shares are held by institutional investors. Comparatively, 86.9% of Forest City Realty Trust shares are held by institutional investors. 9.2% of Forest City Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares IRSA Propiedades Comerciales and Forest City Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IRSA Propiedades Comerciales $183.91 million 4.28 $774.62 million $20.83 1.20
Forest City Realty Trust $911.90 million 7.38 $206.03 million N/A N/A

IRSA Propiedades Comerciales has higher earnings, but lower revenue than Forest City Realty Trust.

Dividends

IRSA Propiedades Comerciales pays an annual dividend of $0.90 per share and has a dividend yield of 3.6%. Forest City Realty Trust pays an annual dividend of $0.50 per share and has a dividend yield of 2.0%. IRSA Propiedades Comerciales pays out 4.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for IRSA Propiedades Comerciales and Forest City Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRSA Propiedades Comerciales 0 1 1 0 2.50
Forest City Realty Trust 0 0 1 0 3.00

IRSA Propiedades Comerciales currently has a consensus target price of $34.00, suggesting a potential upside of 36.00%. Forest City Realty Trust has a consensus target price of $25.00, suggesting a potential downside of 0.71%. Given IRSA Propiedades Comerciales’ higher possible upside, equities research analysts plainly believe IRSA Propiedades Comerciales is more favorable than Forest City Realty Trust.

Profitability

This table compares IRSA Propiedades Comerciales and Forest City Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IRSA Propiedades Comerciales 333.56% 52.00% 29.72%
Forest City Realty Trust 95.00% N/A N/A

Summary

Forest City Realty Trust beats IRSA Propiedades Comerciales on 8 of the 14 factors compared between the two stocks.

About IRSA Propiedades Comerciales

IRSA Propiedades Comerciales S.A. operates as an investment arm of IRSA Inversiones y Representaciones S.A. Alto Palermo S.A. engages in the ownership, acquisition, development, leasing, management, and operation of shopping centers, as well as residential and commercial complexes in Argentina. As of June 30, 2007, it owned and operated ten shopping centers covering a total of 264,995 square meters in Argentina, including six in the Buenos Aires metropolitan area and four in the provinces of Cordoba, Mendoza, Salta, and Santa Fe; and a condominium called Torres de Abasto located in front of the Abasto Shopping Center in Buenos Aires. The company offers leases to retail tenants in its ten shopping centers; administration and maintenance of common areas; administration of contributions made by tenants to finance promotional efforts for the shopping centers; and parking lot services for visitors. The company also offers credit card consumer finance service, through the issuance of its Tarjeta Shopping and Tarjeta Shopping Metroshop credit cards, for consumers at shopping centers, hypermarkets, and street stores. It also engages in the development and sale of residential properties, and acquisition and sale of undeveloped parcels of land for future development. In addition, it engages in the development of condominiums associated with its shopping centers. The company was founded in 1889 and is headquartered in Buenos Aires, Argentina.

About Forest City Realty Trust

Forest City Realty Trust, Inc. is engaged in operation, development, management and acquisition of office, retail and apartment real estate and land throughout the United States. The Company’s segments include Office, Retail, Apartments, Development, Corporate and Other. Its Office segment owns, acquires and operates office and life science buildings. Its Retail segment owns, acquires and operates regional malls, specialty/urban retail centers and amenity retail within its mixed-use projects. Its Apartments segment owns, acquires and operates rental properties, including upscale and middle-market apartments, adaptive reuse developments and subsidized senior housing. Its Development segment represents the development and construction of office and life science buildings, regional malls, specialty/urban retail centers, amenity retail, apartments, condominiums and mixed-use projects.

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