FirstService (NASDAQ:FSV – Get Free Report) and Cyrela Brazil Realty (OTCMKTS:CYRBY – Get Free Report) are both mid-cap real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Risk & Volatility
FirstService has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Cyrela Brazil Realty has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Institutional & Insider Ownership
69.3% of FirstService shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Dividends
FirstService pays an annual dividend of $1.22 per share and has a dividend yield of 0.9%. Cyrela Brazil Realty pays an annual dividend of $0.44 per share and has a dividend yield of 6.5%. FirstService pays out 34.6% of its earnings in the form of a dividend. Cyrela Brazil Realty pays out 46.8% 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. FirstService has increased its dividend for 7 consecutive years.
Analyst Recommendations
This is a summary of recent recommendations and price targets for FirstService and Cyrela Brazil Realty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FirstService | 0 | 3 | 8 | 0 | 2.73 |
| Cyrela Brazil Realty | 0 | 1 | 0 | 0 | 2.00 |
FirstService presently has a consensus price target of $183.70, indicating a potential upside of 34.49%. Given FirstService’s stronger consensus rating and higher possible upside, equities analysts plainly believe FirstService is more favorable than Cyrela Brazil Realty.
Profitability
This table compares FirstService and Cyrela Brazil Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FirstService | 2.88% | 18.07% | 5.59% |
| Cyrela Brazil Realty | 20.58% | 17.27% | 7.75% |
Earnings & Valuation
This table compares FirstService and Cyrela Brazil Realty”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FirstService | $5.50 billion | 1.09 | $145.05 million | $3.53 | 38.69 |
| Cyrela Brazil Realty | $1.69 billion | 1.55 | $359.41 million | $0.94 | 7.25 |
Cyrela Brazil Realty has lower revenue, but higher earnings than FirstService. Cyrela Brazil Realty is trading at a lower price-to-earnings ratio than FirstService, indicating that it is currently the more affordable of the two stocks.
Summary
FirstService beats Cyrela Brazil Realty on 11 of the 16 factors compared between the two stocks.
About FirstService
FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.
About Cyrela Brazil Realty
Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.
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