Contrasting Greentown China (OTCMKTS:GTWCF) and Country Garden (OTCMKTS:CTRYF)

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

Analyst Recommendations

This is a summary of current recommendations for Country Garden and Greentown China, as provided by MarketBeat.com.

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

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

Dividends

Country Garden pays an annual dividend of $0.17 per share. Greentown China pays an annual dividend of $0.43 per share and has a dividend yield of 45.1%. Country Garden pays out 32.0% of its earnings in the form of a dividend. Greentown China pays out 27.9% 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.

Profitability

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

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

Valuation & Earnings

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

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

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.

Insider & Institutional Ownership

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

Summary

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

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.

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.