Analyzing Kennedy-Wilson (KW) & Griffin Industrial Realty (GRIF)

Kennedy-Wilson (NYSE:KW) and Griffin Industrial Realty (NASDAQ:GRIF) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Dividends

Kennedy-Wilson pays an annual dividend of $0.76 per share and has a dividend yield of 3.5%. Griffin Industrial Realty pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Kennedy-Wilson pays out 168.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kennedy-Wilson has raised its dividend for 7 consecutive years. Kennedy-Wilson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Kennedy-Wilson and Griffin Industrial Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kennedy-Wilson 22.76% 11.75% 2.59%
Griffin Industrial Realty -1.53% 0.48% 0.18%

Institutional and Insider Ownership

85.4% of Kennedy-Wilson shares are owned by institutional investors. Comparatively, 46.7% of Griffin Industrial Realty shares are owned by institutional investors. 14.6% of Kennedy-Wilson shares are owned by company insiders. Comparatively, 28.0% of Griffin Industrial Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Kennedy-Wilson has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Griffin Industrial Realty has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kennedy-Wilson and Griffin Industrial Realty, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kennedy-Wilson 0 1 2 0 2.67
Griffin Industrial Realty 0 0 0 0 N/A

Kennedy-Wilson presently has a consensus target price of $27.33, suggesting a potential upside of 25.96%. Given Kennedy-Wilson’s higher probable upside, equities research analysts clearly believe Kennedy-Wilson is more favorable than Griffin Industrial Realty.

Earnings and Valuation

This table compares Kennedy-Wilson and Griffin Industrial Realty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kennedy-Wilson $810.60 million 3.86 $100.50 million $0.45 48.22
Griffin Industrial Realty $43.88 million 4.47 $4.62 million N/A N/A

Kennedy-Wilson has higher revenue and earnings than Griffin Industrial Realty.

Summary

Kennedy-Wilson beats Griffin Industrial Realty on 11 of the 15 factors compared between the two stocks.

About Kennedy-Wilson

Kennedy-Wilson Holdings, Inc. operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company owns interest in approximately 53.1 million square feet of property, including 27,161 multifamily rental units; and 18.8 million square feet of commercial property. It also provides real estate services primarily to financial services clients. In addition, the company is involved in the development, redevelopment, and entitlement of real estate properties; and management of real estate properties for third parties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.

About Griffin Industrial Realty

Griffin Industrial Realty, Inc. develops, manages, and leases industrial and commercial properties in the United States. As of November 30, 2017, the company owned 35 buildings comprising 23 industrial/warehouse buildings, 11 office/flex buildings, and a restaurant building. It also owns approximately 2,791 acres of land in Connecticut, as well as owns approximately 346 acres of land in Massachusetts, 131 acres of land in Pennsylvania, 18 acres in North Carolina, and 1,066 acres in northern Florida. The company was formerly known as Griffin Land & Nurseries, Inc. and changed its name to Griffin Industrial Realty, Inc. in May 2015. Griffin Industrial Realty, Inc. was founded in 1970 and is headquartered in New York City, New York.

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