Analyzing Stockland (OTCMKTS:STKAF) & Mirvac Group (OTCMKTS:MRVGF)

Stockland (OTCMKTS:STKAF – Get Free Report) and Mirvac Group (OTCMKTS:MRVGF – Get Free Report) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

38.4% of Stockland shares are owned by institutional investors. Comparatively, 48.6% of Mirvac Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Get Stockland alerts:

Dividends

Stockland pays an annual dividend of $0.24 per share and has a dividend yield of 7.9%. Mirvac Group pays an annual dividend of $0.09 per share and has a dividend yield of 6.2%. Stockland pays out 105.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mirvac Group pays out 74.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Stockland and Mirvac Group’s gross revenue, earnings per share and valuation.

Mirvac Group is trading at a lower price-to-earnings ratio than Stockland, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Stockland and Mirvac Group, as reported by MarketBeat.com.

Mirvac Group has a consensus price target of $2.16, indicating a potential upside of 48.97%. Given Mirvac Group’s higher possible upside, analysts plainly believe Mirvac Group is more favorable than Stockland.

Profitability

This table compares Stockland and Mirvac Group’s net margins, return on equity and return on assets.

Summary

Stockland beats Mirvac Group on 5 of the 8 factors compared between the two stocks.

About Stockland

(Get Free Report)

Stockland (ASX: SGP) has today released its results for the half year to 31 December 2022. Stockland delivered Funds From Operations (FFO) of $353m and FFO per security of 14.8 cents in 1H23, both up by 0.7% relative to 1H22. Stockland expects FFO to be more heavily skewed to 2H in FY23 than in recent periods due to the timing of MPC settlements. Adjusted Funds From Operations (AFFO) was $310m and AFFO per security was 13.0 cents in 1H23, up by 5.7% compared with 1H22, primarily due to lower tenant incentives over the period. Statutory profit for 1H23 was $301m, down from $850m in 1H22. The statutory result for this period includes $30m of net commercial property revaluation gains, compared with a net uplift of $543m in the previous corresponding period, reflecting the high quality of Stockland's portfolio in an environment of softening capitalisation rates.

About Mirvac Group

(Get Free Report)

Founded in 1972, Mirvac is an Australian Securities Exchange (ASX) top 50 company with an integrated asset creation and curation capability. For more than 50 years, we've dedicated ourselves to creating extraordinary urban places and experiences. We have over $35 billion of assets under management, together with a $12 billion commercial and mixed use development pipeline, and a $17 billion residential development pipeline, enabling us to deliver innovative and high quality property for our customers, while driving long-term value for our securityholders.

Receive News & Ratings for Stockland Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stockland and related companies with MarketBeat.com's FREE daily email newsletter.