Contrasting FirstService (FSV) & Gazit Globe (NYSE:GZT)

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FirstService (NASDAQ:FSV) and Gazit Globe (NYSE:GZT) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Profitability

This table compares FirstService and Gazit Globe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstService 3.71% 36.30% 8.32%
Gazit Globe -17.39% 2.90% 1.05%

Institutional and Insider Ownership

63.5% of FirstService shares are held by institutional investors. Comparatively, 12.8% of Gazit Globe shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

FirstService pays an annual dividend of $0.54 per share and has a dividend yield of 0.7%. Gazit Globe pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. FirstService pays out 26.6% of its earnings in the form of a dividend. FirstService has increased its dividend for 2 consecutive years and Gazit Globe has increased its dividend for 2 consecutive years.

Earnings & Valuation

This table compares FirstService and Gazit Globe’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstService $1.71 billion 1.51 $53.07 million $2.03 36.70
Gazit Globe $817.00 million 2.00 $142.00 million N/A N/A

Gazit Globe has lower revenue, but higher earnings than FirstService.

Risk and Volatility

FirstService has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Gazit Globe has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for FirstService and Gazit Globe, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstService 0 4 0 0 2.00
Gazit Globe 0 0 0 0 N/A

FirstService currently has a consensus target price of $84.67, suggesting a potential upside of 13.65%. Given FirstService’s higher probable upside, equities analysts plainly believe FirstService is more favorable than Gazit Globe.

Summary

FirstService beats Gazit Globe on 6 of the 11 factors compared between the two stocks.

About FirstService

FirstService Corporation provides property services to residential and commercial customers in the United States and Canada. The company operates through two segments, FirstService Residential and FirstService Brands. The FirstService Residential segment manages 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 also offers a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service swimming pool and amenity management, security and concierge/front desk, and landscaping; and financial services comprising cash management, other banking transaction-related services, and specialized property insurance brokerage. In addition, this segment provides energy management solutions and advisory services, and resale processing services. The FirstService Brands segment offers property services through 6 franchise networks; and company-owned locations, including 15 California Closets locations and 6 Paul Davis Restoration location. It offers residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; exterior residential painting and window cleaning services; fire protection services; and heating, ventilation, and air conditioning services, as well as related services. This segment provides its services primarily under the Paul Davis Restoration, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, Century Fire Protection, and Service America brand names. FirstService Corporation was founded in 1988 and is headquartered in Toronto, Canada.

About Gazit Globe

Gazit Globe Ltd, through its subsidiaries, acquires, owns, develops, operates, and manages supermarket-anchored shopping centers in North America, Europe, and internationally. As of December 31, 2016, the company owned and operated 426 properties with a gross leasable area of approximately 6.6 million square meters in approximately 20 countries. Gazit Globe Ltd was incorporated in 1982 and is headquartered in Tel Aviv, Israel.

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