Head to Head Analysis: Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY) vs. The RMR Group (NASDAQ:RMR)

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY) and The RMR Group (NASDAQ:RMR) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Insider and Institutional Ownership

42.3% of The RMR Group shares are held by institutional investors. 54.9% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and The RMR Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	0	0	0	0	0.00
The RMR Group	0	1	0	1	3.00

The RMR Group has a consensus target price of $24.00, suggesting a potential upside of 53.26%. Given The RMR Group’s stronger consensus rating and higher possible upside, analysts clearly believe The RMR Group is more favorable than Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd.

Dividends

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd pays an annual dividend of $0.17 per share and has a dividend yield of 9.1%. The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 11.5%. The RMR Group pays out 153.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has increased its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and The RMR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	N/A	N/A	N/A
The RMR Group	2.56%	5.01%	3.10%

Earnings & Valuation

This table compares Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and The RMR Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	$133.50 million	4.29	$74.68 million	N/A	N/A
The RMR Group	$897.20 million	0.56	$23.13 million	$1.17	13.38

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has higher earnings, but lower revenue than The RMR Group.

Risk & Volatility

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, The RMR Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Summary

The RMR Group beats Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd on 12 of the 15 factors compared between the two stocks.

About Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd

Shenzhen Investment Holdings Bay Area Development Company Limited, an investment holding company, initiates, promotes, develops, and operates toll expressways and bridges in the People’s Republic of China. The company operates through Coastal Expressway (Shenzhen Section), GS Superhighway, GZ West Superhighway, and Xintang Interchange segments. It also operates toll expressway projects comprising Guangzhou-Shenzhen superhighway and Guangzhou-Zhuhai West superhighway. In addition, the company is involved in the land development and utilization project activities. The company was formerly known as Hopewell Highway Infrastructure Limited. Shenzhen Investment Holdings Bay Area Development Company Limited was incorporated in 2003 and is based in Wan Chai, Hong Kong. The company is a subsidiary of Shenzhen Investment International Capital Holdings Infrastructure Co., Ltd.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.