Critical Review: Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) and Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY)

Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY) and Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Cyrela Brazil Realty S.A. Empreendimentos e Participações pays an annual dividend of $0.14 per share and has a dividend yield of 3.6%. Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.66 per share and has a dividend yield of 4.8%. Hannon Armstrong Sustainable Infrastructure Capital pays out 80.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Cyrela Brazil Realty S.A. Empreendimentos e Participações and Hannon Armstrong Sustainable Infrastructure Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyrela Brazil Realty S.A. Empreendimentos e Participações	17.34%	14.08%	6.72%
Hannon Armstrong Sustainable Infrastructure Capital	69.21%	12.13%	4.15%

Analyst Ratings

This is a breakdown of recent ratings for Cyrela Brazil Realty S.A. Empreendimentos e Participações and Hannon Armstrong Sustainable Infrastructure Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyrela Brazil Realty S.A. Empreendimentos e Participações	0	0	0	0	N/A
Hannon Armstrong Sustainable Infrastructure Capital	0	1	10	2	3.08

Hannon Armstrong Sustainable Infrastructure Capital has a consensus price target of $39.25, suggesting a potential upside of 13.47%. Given Hannon Armstrong Sustainable Infrastructure Capital’s higher possible upside, analysts clearly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than Cyrela Brazil Realty S.A. Empreendimentos e Participações.

Volatility and Risk

Cyrela Brazil Realty S.A. Empreendimentos e Participações has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Hannon Armstrong Sustainable Infrastructure Capital has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Institutional & Insider Ownership

96.1% of Hannon Armstrong Sustainable Infrastructure Capital shares are owned by institutional investors. 2.0% of Hannon Armstrong Sustainable Infrastructure Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Cyrela Brazil Realty S.A. Empreendimentos e Participações and Hannon Armstrong Sustainable Infrastructure Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyrela Brazil Realty S.A. Empreendimentos e Participações	$1.25 billion	1.19	$188.70 million	N/A	N/A
Hannon Armstrong Sustainable Infrastructure Capital	$463.20 million	8.52	$148.84 million	$2.06	16.79

Cyrela Brazil Realty S.A. Empreendimentos e Participações has higher revenue and earnings than Hannon Armstrong Sustainable Infrastructure Capital.

Summary

Hannon Armstrong Sustainable Infrastructure Capital beats Cyrela Brazil Realty S.A. Empreendimentos e Participações on 10 of the 15 factors compared between the two stocks.

About Cyrela Brazil Realty S.A. Empreendimentos e Participações

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops, constructs, and sells residential properties in Brazil. It is also involved in the provision of construction management and technical consultancy services related to real estate. The company was founded in 1962 and is headquartered in São Paulo, Brazil.

About Hannon Armstrong Sustainable Infrastructure Capital

Hannon Armstrong Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment in energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company's portfolio includes equity investments, commercial and government receivables, real estate, and debt securities. It invests in climate solution, including Behind-the-Meter that distributes energy projects which reduce energy usage or cost through heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems; Grid-Connected, a renewable energy projects that deploy cleaner energy sources, such as solar, solar-plus-storage, and wind to generate power production; and Fuels, Transport, and Nature, a range of real assets spanning high-emitting economic sectors other than the power grid such as transportation and fuels comprising renewable natural gas plants, transportation fleet enhancements, ecological restoration, and other projects. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.