KE (NYSE:BEKE – Get Free Report) and Cyrela Brazil Realty (OTCMKTS:CYRBY – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Profitability
This table compares KE and Cyrela Brazil Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KE | 5.38% | 7.62% | 4.38% |
| Cyrela Brazil Realty | 20.58% | 17.27% | 7.75% |
Insider and Institutional Ownership
39.3% of KE shares are held by institutional investors. 6.8% of KE shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Analyst Ratings
This is a summary of current ratings and target prices for KE and Cyrela Brazil Realty, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KE | 0 | 1 | 6 | 1 | 3.00 |
| Cyrela Brazil Realty | 0 | 1 | 0 | 0 | 2.00 |
KE presently has a consensus price target of $23.64, indicating a potential upside of 34.82%. Given KE’s stronger consensus rating and higher probable upside, analysts clearly believe KE is more favorable than Cyrela Brazil Realty.
Earnings and Valuation
This table compares KE and Cyrela Brazil Realty”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KE | $13.52 billion | 1.45 | $428.13 million | $0.61 | 28.75 |
| Cyrela Brazil Realty | $1.69 billion | 1.48 | $359.41 million | $0.94 | 6.91 |
KE has higher revenue and earnings than Cyrela Brazil Realty. Cyrela Brazil Realty is trading at a lower price-to-earnings ratio than KE, indicating that it is currently the more affordable of the two stocks.
Dividends
KE pays an annual dividend of $0.23 per share and has a dividend yield of 1.3%. Cyrela Brazil Realty pays an annual dividend of $0.44 per share and has a dividend yield of 6.8%. KE pays out 37.7% 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.
Summary
KE beats Cyrela Brazil Realty on 10 of the 17 factors compared between the two stocks.
About KE
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
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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