Contrasting BBX Capital (BBX) and Its Competitors

BBX Capital (NYSE: BBX) is one of 48 publicly-traded companies in the “Real estate” industry, but how does it contrast to its competitors? We will compare BBX Capital to related companies based on the strength of its dividends, risk, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Volatility and Risk

BBX Capital has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, BBX Capital’s competitors have a beta of 1.05, suggesting that their average stock price is 5% more volatile than the S&P 500.

Profitability

This table compares BBX Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BBX Capital 8.75% 6.32% 2.45%
BBX Capital Competitors 26.27% 3.43% 0.82%

Dividends

BBX Capital pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. BBX Capital pays out 5.6% of its earnings in the form of a dividend. As a group, “Real estate” companies pay a dividend yield of 2.9% and pay out 56.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BBX Capital and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BBX Capital 0 0 2 0 3.00
BBX Capital Competitors 161 390 602 18 2.41

BBX Capital presently has a consensus price target of $16.50, suggesting a potential upside of 82.93%. As a group, “Real estate” companies have a potential upside of 11.92%. Given BBX Capital’s stronger consensus rating and higher probable upside, equities analysts clearly believe BBX Capital is more favorable than its competitors.

Earnings and Valuation

This table compares BBX Capital and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BBX Capital $815.78 million $82.19 million 12.53
BBX Capital Competitors $1.33 billion $328.82 million 18.52

BBX Capital’s competitors have higher revenue and earnings than BBX Capital. BBX Capital is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

21.9% of BBX Capital shares are held by institutional investors. Comparatively, 46.4% of shares of all “Real estate” companies are held by institutional investors. 81.8% of BBX Capital shares are held by insiders. Comparatively, 20.6% of shares of all “Real estate” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

BBX Capital beats its competitors on 8 of the 15 factors compared.

About BBX Capital

BBX Capital Corporation, formerly known as BFC Financial Corporation, is a private equity and venture capital firm specializing in investments and acquisitions of middle market companies. The firm also invests in mergers and acquisition, add-on acquisitions, divestiture, taking public companies private and private companies public, leveraged buyout, partnership, recapitalization, and restructuring. It typically does not invest in industries or companies whose ultimate returns are event driven. The firm seeks to invest across a broad range of industries ranging from service to manufacturing businesses. The firm prefers to acquire controlling interests in its portfolio companies and can also consider minority investments. BFC Financial Corporation was founded in 1980 and is based in Fort Lauderdale, Florida.

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