BBX Capital (NYSE:BBX) and HomeFed (OTCMKTS:HOFD) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Profitability

This table compares BBX Capital and HomeFed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BBX Capital 2.42% 4.36% 1.58%
HomeFed -4.58% -1.17% -0.92%

Analyst Ratings

This is a summary of recent ratings and price targets for BBX Capital and HomeFed, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BBX Capital 0 0 1 0 3.00
HomeFed 0 0 0 0 N/A

BBX Capital currently has a consensus target price of $11.00, indicating a potential upside of 179.19%. Given BBX Capital’s higher probable upside, equities research analysts clearly believe BBX Capital is more favorable than HomeFed.

Institutional and Insider Ownership

29.8% of BBX Capital shares are held by institutional investors. Comparatively, 8.5% of HomeFed shares are held by institutional investors. 32.8% of BBX Capital shares are held by insiders. Comparatively, 5.6% of HomeFed shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares BBX Capital and HomeFed’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BBX Capital $961.79 million 0.39 $35.10 million N/A N/A
HomeFed $140.57 million 4.23 -$70,000.00 N/A N/A

BBX Capital has higher revenue and earnings than HomeFed.

Volatility & Risk

BBX Capital has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, HomeFed has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Summary

BBX Capital beats HomeFed on 10 of the 11 factors compared between the two stocks.

BBX Capital Company Profile

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.

HomeFed Company Profile

HomeFed Corporation, together with its subsidiaries, invests in and develops residential and commercial real estate properties in California, Virginia, South Carolina, Florida, Maine, and New York. The company develops residential and commercial land development projects and other unimproved land, as well as projects in various stages of development, and retail and office operating properties. It also engages in the design engineering, grading raw land, and constructing public infrastructure, such as streets, utilities, and public facilities, as well as develops individual lots for home sites or other facilities. In addition, the company holds interest in Brooklyn Renaissance Plaza, which comprises a 665 room hotel operated by Marriott; and operates an office building complex and parking space garage located in Brooklyn, New York. Further, it holds interest in HomeFed Village III Master, LLC that owns and develops an approximate 450 acre community planned for 948 homes in the Otay Ranch General Plan Area of Chula Vista, California. HomeFed Corporation was incorporated in 1988 and is headquartered in Carlsbad, California.

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