Critical Analysis: LuxUrban Hotels (NASDAQ:LUXH) & Henderson Land Development (OTCMKTS:HLDCY)

Henderson Land Development (OTCMKTS:HLDCY) and LuxUrban Hotels (NASDAQ:LUXH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

28.5% of LuxUrban Hotels shares are held by institutional investors. 7.0% of LuxUrban Hotels shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Henderson Land Development has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, LuxUrban Hotels has a beta of -1.5, indicating that its stock price is 250% less volatile than the S&P 500.

Profitability

This table compares Henderson Land Development and LuxUrban Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henderson Land Development	N/A	N/A	N/A
LuxUrban Hotels	-145.57%	N/A	-29.89%

Analyst Recommendations

This is a breakdown of recent recommendations for Henderson Land Development and LuxUrban Hotels, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henderson Land Development	0	0	0	0	0.00
LuxUrban Hotels	0	2	1	0	2.33

LuxUrban Hotels has a consensus target price of $280.00, suggesting a potential upside of 28,294.69%. Given LuxUrban Hotels’ stronger consensus rating and higher possible upside, analysts clearly believe LuxUrban Hotels is more favorable than Henderson Land Development.

Valuation & Earnings

This table compares Henderson Land Development and LuxUrban Hotels”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henderson Land Development	$3.52 billion	4.06	$1.18 billion	N/A	N/A
LuxUrban Hotels	$72.79 million	0.04	-$78.52 million	($148.49)	-0.01

Henderson Land Development has higher revenue and earnings than LuxUrban Hotels.

Summary

Henderson Land Development beats LuxUrban Hotels on 6 of the 11 factors compared between the two stocks.

About Henderson Land Development

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Hotel Room Operation, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Hotel Room Operation segment operates hotel properties. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials. It also engages in food and beverage, and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

About LuxUrban Hotels

LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. The company was incorporated in 2017 and is headquartered in Miami, Florida.