Contrasting Kennedy-Wilson (KW) and MMA Capital Management (MMAC) – Fairfield Current


Kennedy-Wilson (NYSE:KW) and MMA Capital Management (NASDAQ:MMAC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Insider and Institutional Ownership

83.7% of Kennedy-Wilson shares are owned by institutional investors. Comparatively, 10.3% of MMA Capital Management shares are owned by institutional investors. 14.6% of Kennedy-Wilson shares are owned by insiders. Comparatively, 18.3% of MMA Capital Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Kennedy-Wilson has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, MMA Capital Management has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Profitability

This table compares Kennedy-Wilson and MMA Capital Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kennedy-Wilson 28.15% 14.99% 2.96%
MMA Capital Management 180.49% 7.13% 3.17%

Dividends

Kennedy-Wilson pays an annual dividend of $0.84 per share and has a dividend yield of 4.3%. MMA Capital Management does not pay a dividend. Kennedy-Wilson pays out 186.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kennedy-Wilson has increased its dividend for 8 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Kennedy-Wilson and MMA Capital Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kennedy-Wilson 0 1 3 0 2.75
MMA Capital Management 0 0 0 0 N/A

Kennedy-Wilson currently has a consensus target price of $26.75, indicating a potential upside of 37.39%. Given Kennedy-Wilson’s higher probable upside, analysts plainly believe Kennedy-Wilson is more favorable than MMA Capital Management.

Valuation & Earnings

This table compares Kennedy-Wilson and MMA Capital Management’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kennedy-Wilson $810.60 million 3.46 $100.50 million $0.45 43.27
MMA Capital Management $36.83 million 4.12 $19.40 million N/A N/A

Kennedy-Wilson has higher revenue and earnings than MMA Capital Management.

Summary

Kennedy-Wilson beats MMA Capital Management on 10 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 MMA Capital Management

MMA Capital Management, LLC creates and manages investments in housing and renewable energy sectors in the United States and internationally. Its investments in debt securities comprises multifamily tax-exempt bonds, as well as other real estate related bond investments. The company offers leveraged bonds; low-income housing tax credits; asset management and administrative services to a limited liability company and a commercial bank; and guarantees to the institutional investors related to the receipt of tax credits. It also raises, invests in, and manages private real estate funds, which invests in residential real estate. The company was formerly known as Municipal Mortgage & Equity, LLC and changed its name to MMA Capital Management, LLC in September 2014. MMA Capital Management, LLC was founded in 1995 and is headquartered in Baltimore, Maryland.

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