Front Yard Residential (NYSE:RESI) and Retail Value (NYSE:RVI) Critical Analysis

Front Yard Residential (NYSE:RESI) and Retail Value (NYSE:RVI) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Dividends

Front Yard Residential pays an annual dividend of $0.60 per share and has a dividend yield of 5.1%. Retail Value pays an annual dividend of $1.30 per share and has a dividend yield of 3.6%.

Profitability

This table compares Front Yard Residential and Retail Value’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Front Yard Residential -36.63% -16.43% -3.43%
Retail Value 8.64% 3.30% 1.17%

Earnings & Valuation

This table compares Front Yard Residential and Retail Value’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Front Yard Residential $183.01 million 3.44 -$130.84 million N/A N/A
Retail Value $292.58 million 2.34 -$165.30 million N/A N/A

Front Yard Residential has higher earnings, but lower revenue than Retail Value.

Volatility and Risk

Front Yard Residential has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Retail Value has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Front Yard Residential and Retail Value, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Front Yard Residential 0 0 2 0 3.00
Retail Value 0 1 0 0 2.00

Front Yard Residential currently has a consensus target price of $13.50, indicating a potential upside of 15.48%. Retail Value has a consensus target price of $38.00, indicating a potential upside of 5.61%. Given Front Yard Residential’s stronger consensus rating and higher probable upside, research analysts plainly believe Front Yard Residential is more favorable than Retail Value.

Insider and Institutional Ownership

76.7% of Front Yard Residential shares are held by institutional investors. Comparatively, 67.2% of Retail Value shares are held by institutional investors. 0.9% of Front Yard Residential shares are held by insiders. Comparatively, 0.2% of Retail Value shares are held by 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.

Summary

Front Yard Residential beats Retail Value on 9 of the 14 factors compared between the two stocks.

About Front Yard Residential

Front Yard is an industry leader in providing quality, affordable rental homes to America's families. Our homes offer exceptional value in a variety of suburban communities that have easy accessibility to metropolitan areas. Front Yard's tenants enjoy the space and comfort that is unique to single-family housing at reasonable prices. Our mission is to provide our tenants with houses they are proud to call home.

About Retail Value

RVI is an independent publicly traded company trading under the ticker symbol “RVI” on the New York Stock Exchange. RVI holds assets in the continental U.S. and Puerto Rico and is managed by one or more subsidiaries of SITE Centers Corp. RVI focuses on realizing value in its business through operations and sales of its assets.

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