Critical Review: Benev Capital (OTCMKTS:BEVFF) & First Pacific (OTCMKTS:FPAFY)

Benev Capital (OTCMKTS:BEVFF) and First Pacific (OTCMKTS:FPAFY) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Dividends

Benev Capital pays an annual dividend of $0.20 per share and has a dividend yield of 8.0%. First Pacific pays an annual dividend of $0.14 per share and has a dividend yield of 3.4%. Benev Capital pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

0.0% of First Pacific shares are owned by institutional investors. 12.0% of Benev Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Benev Capital and First Pacific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benev Capital	0	1	0	0	2.00
First Pacific	0	0	0	0	0.00

Profitability

This table compares Benev Capital and First Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Benev Capital	41.88%	11.86%	5.83%
First Pacific	N/A	N/A	N/A

Earnings and Valuation

This table compares Benev Capital and First Pacific”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benev Capital	$47.44 million	8.90	$19.43 million	$0.12	20.72
First Pacific	$10.06 billion	0.35	$600.30 million	N/A	N/A

First Pacific has higher revenue and earnings than Benev Capital.

Volatility & Risk

Benev Capital has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, First Pacific has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Summary

Benev Capital beats First Pacific on 8 of the 12 factors compared between the two stocks.

About Benev Capital

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was founded in 1960 and is headquartered in Vancouver, Canada.

About First Pacific

First Pacific Company Limited, an investment holding company, engages in the consumer food products, telecommunications, infrastructure, and natural resources businesses in the Philippines, Indonesia, Singapore, the Middle East, Africa, and internationally. The company offers a range of telecommunications and digital services, including fiber optic backbone, and fixed line and cellular networks. It also manufactures and distributes a range of food products, including noodles, dairy products, snack foods, food seasonings, nutrition and special foods, beverages, wheat flour, and pasta; breeds seeds; cultivates oil palm, rubber, sugar cane, and other crops; and offers cooking oils, margarines, and shortenings. In addition, the company explores for, mines, and produces gold, copper, and silver; and produces sugar and bioethanol. Further, it is involved in the operation of gas-fired power plant; provision of water distribution, sewerage, and sanitation services; and operation of toll roads and rails, as well as distribution of electricity. First Pacific Company Limited was founded in 1981 and is headquartered in Central, Hong Kong.