Comparing Wharf (WARFY) & Its Peers

Insider and Institutional Ownership

0.1% of Wharf shares are held by institutional investors. Comparatively, 32.7% of shares of all “Real Estate Management & Development” companies are held by institutional investors. 27.3% of shares of all “Real Estate Management & Development” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Wharf pays an annual dividend of $3.07 per share and has a dividend yield of 56.9%. Wharf pays out 20.0% of its earnings in the form of a dividend. As a group, “Real Estate Management & Development” companies pay a dividend yield of 5.0% and pay out 47.9% of their earnings in the form of a dividend. Wharf is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Wharf and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Wharf	N/A	N/A	0.35
Wharf Competitors	$2.68 billion	-$394.99 million	-20.50

Wharf’s competitors have higher revenue, but lower earnings than Wharf. Wharf is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Wharf and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wharf	N/A	N/A	N/A
Wharf Competitors	-247.19%	-677.28%	-1.62%

Summary

Wharf beats its competitors on 6 of the 9 factors compared.

About Wharf

Founded in 1886 as the 17th company registered in Hong Kong, The Wharf (Holdings) Limited (Stock Code: 0004) is a premier company with strong connection to the history of Hong Kong. As one of the 30 constituent stocks in the original Hang Seng Index from the 1960s, Wharf is backed by a long standing mission of Building for Tomorrow and a proven track record in management and execution. After spinning off Wharf Real Estate Investment Company Limited as a separately-listed company (Stock Code: 1997) in 2017, the Group's businesses currently comprise Investment Properties, Hotels and Development Properties in Hong Kong and Mainland China. Other businesses include Logistics Infrastructure through Modern Terminals and Hong Kong Air Cargo Terminals. The Group's exclusive Peak Portfolio, comprising a rare collection of unique properties, continues to feature the highest bespoke quality and craftsmanship catering to the demands of a discerning clientele that does not buy in off plans presale. The development profile is characterised by attention to details, generous development cost, long payback period and high capital intensity. In Mainland Investment Properties, starting from a small nascent base some 20 years ago, the Group's proactive efforts are beginning to bear fruit in order to realise plans to generate a proper return over the next 20 to 30 years remaining on the majority of the underlying land leases. However, market dynamics have changed and competition has significantly stiffened. The Mainland Development Properties land bank at the end of June 2022 was 1.94 million square metres. Strict price control and other regulatory policies have depressed selling prices and increased investment risk. The Group has become more selective with new land acquisition. At the same time, the Group's land bank has been marked to market, which is however still undergoing correction. Wharf Hotels manages 16 hotels, with over 5,000 rooms and suites, in Mainland China, Hong Kong and the Philippines. Niccolo Suzhou, opened in April 2021, was the fifth addition to the luxury Niccolo Hotels brand, with the other 11 hotels under the foundation Marco Polo Hotels brand. The Group owns three of these hotels and a fourth through a 50/50 joint venture. The Group also owns and operates Modern Terminals and is a founding partner in Hong Kong Air Cargo Terminals, key components in Hong Kong's success as an international trade and transportation hub for decades. Building for Tomorrow also extends to Wharf's Business-in-Community (BIC) commitment. Flagship school improvement programme Project WeCan grows from strength to strength along with a series of BIC initiatives, with an aim of helping different segments of society in Hong Kong and the Mainland.