Encouragingly, LSL’s estate agent division posted an increase in income of 5% in 2015, with exchange income up by 1%, lettings income rising by 12% and financial services income increasing by 16%. It continues to seek further acquisitions and its strategy of both expanding its number of branches and also maximising operating profit per branch seems to be paying off.

With LSL forecast to increase its bottom line by 16% in 2016, investor sentiment could remain strong over the medium term. And with the company having a price-to-earnings growth (PEG) ratio of just 0.5, it seems to offer growth at a reasonable price as well as a generous yield of 5.6%.

Digital delight

Also posting strong gains today is digital advertising company Matomy Media (LSE: MTMY), with its shares being up 8% following the release of a pleasing update. Encouragingly for its investors, the company will meet the guidance issued in August for the 2015 financial year, with earnings before interest, tax, depreciation and amortisation (EBITDA) expected to be between $25.3m and $25.7m, with strong growth in the second half of the year significantly outpacing that of the first half of the year.

Looking ahead, Matomy Media is confident in the outlook for the digital advertising sector. While the first half of 2015 was challenging, it believes that the rapid evolution of the industry and its diversified business model provide significant growth opportunities. And with earnings growth of 72% being pencilled-in by the market for 2016, investor sentiment in the stock could continue to improve following the 49% fall in Matomy Media’s share price in the last year. With a PEG ratio of 0.1, it appears to offer substantial capital gains, although it’s likely to be relatively volatile.

Easy does it

Meanwhile, shares in Easyhotel (LSE: EZH) are up by 10% today despite no significant news flow being released by the company. This follows a 45% rise in the last three months and shows that investor sentiment may be warming to the super-budget hotel chain.

Furthermore, with Easyhotel having released an encouraging trading update just last week that stated the company’s performance is on track, its long-term outlook remains relatively upbeat. For example, it has been granted planning permission for new developments in Manchester and Liverpool, with the company aiming to establish further hotels in gateway cities across the UK and Europe.

Although Easyhotel’s concept could work, its current valuation indicates that it may be a stock to watch rather than buy after its recent share price rise. For example, it trades on a price-to-earnings (P/E) ratio of 92 and even though its growth prospects may be bright, it may be prudent to await a keener valuation before buying.

The post Today’s Small-Cap Superstars? LSL Property Services plc, Matomy Media Group Ltd And Easyhotel PLC appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

The traditional estate agents hit back by claiming that customers prefer an all-inclusive service, as unlike online-only estate agents, they also host viewing, carry out negotiations and benefit from local knowledge.

Online-only estate agents still rely on the portals to market their properties to a wide audience. So, regardless of the changes in the estate agency industry, the importance of the online property portals is unlikely to change.

Rightmove’s dominance

Dominance by one company is commonplace in the internet industry, with Google being the dominant search engine, Facebook being the dominant social media, eBay being the dominant online auctioneer, and so on. Size matters, because of network effects and economies of scale.

But, although Rightmove (LSE: RMV) is the biggest online property portal by traffic, it still faces stiff competition from Zoopla (LSE: ZPLA). Innovations ranging from calculating the distance to the nearest railway station and archived listings have helped Zoopla to stay in a strong second place position. But, Rightmove’s dominance is set to strengthen with the rise of OnTheMarket.

Traditional estate agents, concerned about the duopoly of online portals and the rise of online estate agents, have launched their own competitor portal, OnTheMarket. Agents listing properties on OnTheMarket are only allowed to list on one other portal; and with Rightmove being the busiest, it is Zoopla that loses out. OnTheMarket also refuses listings from online-only estate agents.

Zoopla, which still managed to grow revenues by 10% in the six months leading to the end of March 2015 saw the number of its members fall by 16%. The worst may yet be to come, as Zoopla could see more traffic move to Rightmove, given that Zoopla no longer has a comprehensive listing of properties for sale.

Countrywide (LSE: CWD), LSL Property (LSE: LSL) and Foxtons (LSE: FOXT) have all not signed up to OnTheMarket, and continue to use Zoopla and Rightmove, among other advertising venues. This should mean that OnTheMarket will fail to build enough of a presence, and instead actually strengthen Rightmove’s dominance, as only Rightmove will be able to attract listings from all agents.

With Rightmove’s dominance set to strengthen, it is a better buy than Zoopla. Rightmove’s forward P/E ratio of 29.7 is also lower than Zoopla’s 34.7.

Incumbent estate agents will continue to grow (at least in the medium term)

The average seller is apprehensive with handling prospective buyers and dealing with negotiations, and so there will always be a market for traditional estate agents. So far, online-only estate agents only make up 5% of the total market, and this is unlikely to change significantly in the medium term.

With property transactions rising strongly and property prices increasing, the incumbent estate agents will likely continue to see their revenues and earnings grow steadily. 

What’s more, shares in Countrywide, LSL Property and Foxtons are undervalued, with their forward P/E ratios being 14.7, 12.2 and 21.0, respectively. Benefiting from strong operating cash flows, they also pay attractive dividends, with forward dividend yields of 4.1%, 3.4% and 4.1%, respectively.

The post Should You Buy Rightmove plc And Zoopla Property Group plc Instead Of Countrywide plc, LSL Property Services plc and Foxtons Group plc? appeared first on The Twelfth Magpie.

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Jack Tang has a position in Countrywide. The Motley Fool UK has recommended Rightmove. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

At present levels, after falling 10% over the past 12 months, Shell’s shares now support a dividend yield of 6.1%. 

Nevertheless, according to current City forecasts Shell’s earnings are set to fall 31% this year — in line with the falling oil price. However, analysts expect the company’s earnings to rebound by 31% during 2016. The company is currently trading at a forward P/E of 15.4.  

Gambling problem

After a tough 2014, Ladbrokes’ (LSE: LAD) shares have recently fallen to a five-year low. Still, the company has maintained its dividend payout.

Current figures suggest that the company will support a dividend yield of 6.4% this year and analysts expect the payout to rise in line with inflation over the next few years.

Unfortunately, Ladbrokes’ earnings per share are set to fall around 20% this year, although they are expected to rebound by 12% during 2016. Based on these figures, the company is currently trading at a forward P/E of 15.2. 

Dividend champion

Games Workshop (LSE: GAW) has a reputation for being a dividend stalwart. Over the past five years the company’s annual dividend yield has averaged 7.1% and this is set to continue.

Analysts believe that Games Workshop is set to yield 6.2% this year, 6.8% during 2016 and 7.8% during 2017. The company’s dividend payout is set to increase at an inflation busting rate of 10% per annum.

According to current City forecasts, Games Workshop is currently trading at a forward P/E of 13.1 and the dividend is covered 1.2 times by earnings per share. 

Property plays

Taylor Wimpey’s (LSE: TW) profits are surging ahead as the UK property market continues to grow. To reward shareholders, the company is trying to return as much cash to investors as possible.

Indeed, Taylor is planning to issue a special dividend of just under 8p per share this year in addition to the company’s regular payout.

Including the regular payout, Taylor’s shares will support a dividend yield of 6.6% during 2015. Both the special and regular payouts are covered one-and-a-half times by earnings per share, so there’s room for further payout growth. Taylor currently trades at a lowly forward P/E of 10.2. 

LSL Property Services (LSE: LSL) is another property play that’s throwing off cash. During 2014 LSL’s shares supported a dividend yield of 6.9%, which included both a regular and special dividend payout. The company’s regular dividend payout came to 12.3p per share during 2014, while the special payout amounted to 16.5p per share. 

And there could be further special payouts in the cards. Although City analysts expect the company’s dividend yield to fall back to 4.4% for this year, this figure only includes the regular payout. However, the regular payout is covered more than twice by earnings per share, leaving plenty of room for growth. At present LSL trades at a forward P/E of 9.6.

The post 5 Top Income Stocks Yielding Over 6%: Royal Dutch Shell Plc, Ladbrokes PLC, Games Workshop Group PLC, SSE PLC & LSL Property Services plc appeared first on The Twelfth Magpie.

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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Two pure-plays on the buy-to-let market are Belvoir Lettings and M Winkworth, although these two companies are micro-caps with market values of less than £35m so they may be unsuitable for some investors. 

The industry’s larger players could be better picks. 

Biggest is best

National property group Countrywide (LSE: CWD) is one of the largest players in the UK’s booming property market and buy-to-let business. 

Countrywide has a national presence and offers services covering the whole property market, from estate agent and mortgage provider to lettings agent. 

And with all bases covered, Countrywide can profit whether the property market is going up or down. The letting business gives a stable, predictable flow of income. 

The company reported strong demand from buy-to-let landlords during 2014, reporting a year-on-year rise of 25% in the number of residential properties under management. 

Pre-tax profit is set to nearly triple this year to £103m, and Countrywide currently trades at a forward 2015 P/E of 12.8. The group supports a dividend yield of 4.4%. 

With its diversified operations, Countrywide is a great play large-cap play on the buy-to-let sector.  

One-stop-shop

A better pick for small-cap investors could be LSL Property Services (LSE: LSL), a one-stop shop for property and related services. The company conducts the sale of residential property, provides lettings services, surveying, mortgage advice and services to mortgage lenders, including valuations, asset management and property management.

In September of last year, the group signed a new contract with Lloyds Banking Group to provide surveying and valuation services for one of the UK’s largest mortgage lenders. Group income from lettings income expanded at an annual rate of 26% for the 10-month period ended 31 October 2014.

Unfortunately, LSL did issue a profit warning last year as deteriorating housing market conditions slowed growth. Nevertheless, at present the company only trades at a forward P/E of 10.4. 

Cash is king 

Lastly, the UK’s number one property website, Rightmove (LSE: RMV).

Even though Rightmove isn’t technically in the buy-to-let business, the company is set to benefit from an increasing level of activity in the property sector.

Last year Rightmove was one of the UK’s most visited websites. What’s more, the great thing about a business like Rightmove’s is the fact that the company has very low overhead costs, but generates large amounts of cash. During 2013 Rightmove generated £83m in cash from operations, but capital spending only amounted to £1m.

Still, you have to pay a premium for this kind of quality. The company currently trades at a forward P/E of 27.5 and a 2015 P/E of 24.3.

Current City forecasts expect Rightmove’s pre-tax profit to jump 14% this year, followed by growth of 13% to £129m during 2015.

The post 3 Plays On The Buy-To-Let Boom: LSL Property Services plc, Rightmove Plc & Countrywide PLC appeared first on The Twelfth Magpie.

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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has recommended Rightmove. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.