Financial Review: Mitsubishi Estate (OTCMKTS:MITEY) and AMREP (NYSE:AXR)

AMREP (NYSE:AXR) and Mitsubishi Estate (OTCMKTS:MITEY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider and Institutional Ownership

59.8% of AMREP shares are held by institutional investors. 37.2% of AMREP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares AMREP and Mitsubishi Estate”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMREP	$48.45 million	2.38	$12.72 million	$2.48	8.77
Mitsubishi Estate	$10.37 billion	2.81	$1.27 billion	$1.05	22.23

Mitsubishi Estate has higher revenue and earnings than AMREP. AMREP is trading at a lower price-to-earnings ratio than Mitsubishi Estate, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

AMREP has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Mitsubishi Estate has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for AMREP and Mitsubishi Estate, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMREP	0	1	0	0	2.00
Mitsubishi Estate	0	0	0	1	4.00

Profitability

This table compares AMREP and Mitsubishi Estate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMREP	27.54%	10.35%	10.02%
Mitsubishi Estate	11.67%	5.50%	1.86%

Summary

AMREP beats Mitsubishi Estate on 7 of the 13 factors compared between the two stocks.

About AMREP

AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.

About Mitsubishi Estate

Mitsubishi Estate Co., Ltd. engages in the real estate activities in Japan and internationally. The company develops, leases, manages, and sells office buildings and commercial facilities; operates rental offices, coworking space, virtual offices, hourly meeting rooms, home delivery storage service, commercial nursing homes, and building garages; offers real estate management, as well as building management services, such as security, facility management, cleaning, and planting services; and operates hotels and airports. It also engages in the construction, sales, management, and leasing of developed condominiums and residential houses; design and contract construction of custom-built houses; renovation and sales of condominiums; real estate brokerage; dark fiber leasing and data center housing business; provision of real estate investment, such as asset management services to investment corporations and real estate funds; architectural design and engineering business; cooling and heating supply business; and parking management business. In addition, the company plans and operates logistics facilities; purchases, manufactures, processes, and sells construction materials; constructs prefabricated housing using cross-laminated timber and laminated wood; constructs, manufactures, and sells furniture and household items; offers financial consulting and investment advisory services; and develops and manages information systems and software. Further, it plans, develops, and operates GYYM, a platform service for fitness facilities; Ele-Cinema, a content distribution service that utilizes projectors in elevators; WELL ROOM, a healthcare portal site for foreign residents; and delivery and takeout systems. Additionally, the company produces and sells agricultural products; and offers walking tour entertainment content, human resources, land management, and landscaping services. Mitsubishi Estate Co., Ltd. was founded in 1890 and is headquartered in Tokyo, Japan.