Comparing FirstService (NASDAQ:FSV) & The Competition

FirstService (NASDAQ: FSV) is one of 24 publicly-traded companies in the “Real Estate Services” industry, but how does it weigh in compared to its rivals? We will compare FirstService to related businesses based on the strength of its earnings, analyst recommendations, institutional ownership, risk, profitability, valuation and dividends.

Volatility and Risk

FirstService has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, FirstService’s rivals have a beta of 1.53, indicating that their average stock price is 53% more volatile than the S&P 500.

Profitability

This table compares FirstService and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstService 2.74% 24.16% 5.65%
FirstService Competitors 4.69% 15.85% 3.20%

Institutional & Insider Ownership

61.2% of FirstService shares are owned by institutional investors. Comparatively, 68.9% of shares of all “Real Estate Services” companies are owned by institutional investors. 12.8% of shares of all “Real Estate Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares FirstService and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FirstService $1.48 billion $33.59 million 54.99
FirstService Competitors $2.13 billion $74.49 million -1,433.42

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

Dividends

FirstService pays an annual dividend of $0.49 per share and has a dividend yield of 0.7%. FirstService pays out 39.5% of its earnings in the form of a dividend. As a group, “Real Estate Services” companies pay a dividend yield of 1.2% and pay out 39.3% of their earnings in the form of a dividend. FirstService lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for FirstService and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstService 0 6 0 0 2.00
FirstService Competitors 90 357 630 17 2.52

FirstService currently has a consensus price target of $66.50, indicating a potential downside of 2.48%. As a group, “Real Estate Services” companies have a potential upside of 4.94%. Given FirstService’s rivals stronger consensus rating and higher probable upside, analysts plainly believe FirstService has less favorable growth aspects than its rivals.

Summary

FirstService rivals beat FirstService on 12 of the 15 factors compared.

FirstService Company Profile

Firstservice Corporation is a provider of residential property management and other essential property services to residential and commercial customers. The Company operates through two segments: FirstService Residential and FirstService Brands. FirstService Residential is a property manager and provides ancillary services in the areas of on-site staffing, including building engineering and maintenance, full-service amenity management, security, concierge and front desk personnel, and landscaping; banking and insurance products, and energy conservation and management solutions. FirstService Brands provides essential property services to residential and commercial customers in North America through franchise networks and Company-owned locations. The principal brands in this division include Paul Davis Restoration, California Closets, Certa Pro Painters, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, Century Fire Protection and Service America.

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