Forestar Group (NYSE: FOR) and Five Point Holdings (NYSE:FPH) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitabiliy, analyst recommendations and dividends.
Analyst Ratings
This is a summary of recent ratings and target prices for Forestar Group and Five Point Holdings, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forestar Group | 0 | 0 | 0 | 0 | N/A |
| Five Point Holdings | 0 | 2 | 4 | 0 | 2.67 |
Five Point Holdings has a consensus price target of $19.70, indicating a potential upside of 30.38%. Given Five Point Holdings’ higher possible upside, analysts plainly believe Five Point Holdings is more favorable than Forestar Group.
Profitability
This table compares Forestar Group and Five Point Holdings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Forestar Group | 48.48% | 16.18% | 12.25% |
| Five Point Holdings | N/A | N/A | N/A |
Valuation and Earnings
This table compares Forestar Group and Five Point Holdings’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Forestar Group | $182.00 million | 3.93 | $44.26 million | $2.08 | 8.22 |
| Five Point Holdings | $127.17 million | 7.40 | -$108.49 million | N/A | N/A |
Forestar Group has higher revenue and earnings than Five Point Holdings.
Institutional & Insider Ownership
84.4% of Forestar Group shares are held by institutional investors. Comparatively, 0.6% of Five Point Holdings shares are held by institutional investors. 3.1% of Forestar Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Forestar Group beats Five Point Holdings on 7 of the 10 factors compared between the two stocks.
Forestar Group Company Profile
Forestar Group Inc. is a residential and mixed-use real estate development company. The Company operates through three segments. The Real Estate segment secures entitlements and develops infrastructure on its lands, for single-family residential and mixed-use communities. The Mineral resources segment is focused on its owned oil and gas mineral interests through promoting exploration, development and production activities. The Other segment manages its timber holdings, recreational leases and water resource initiatives. As of December 31, 2016, its core community development business had directly or through ventures interests in 50 residential and mixed-use projects consisting of 4,600 acres of real estate located in 10 states and 14 markets. As of December 31, 2016, its non-core assets included approximately 523,000 net acres of owned mineral assets, 19,000 acres of timberland and undeveloped land, four multifamily assets and approximately 20,000 acres of groundwater leases.
Five Point Holdings Company Profile
Five Point Holdings, LLC, formerly Newhall Holding Company, LLC, is the owner and developer of mixed-use, planned communities in coastal California. The Company is primarily engaged in the business of planning and developing its three mixed-use, planned communities. It operates in three segments: Newhall, San Francisco and Great Park. Its three mixed-use, planned communities are: Newhall Ranch in Los Angeles County; The San Francisco Shipyard and Candlestick Point in the City of San Francisco; and Great Park Neighborhoods in Orange County. Newhall Ranch consists of approximately 15,000 acres in northern Los Angeles County. Newhall Ranch is designed to include approximately 21,500 home sites and approximately 11.5 million square feet of commercial space. The San Francisco Shipyard and Candlestick Point consists of approximately 800 acres of bay front property in the city of San Francisco. Great Park Neighborhoods consists of approximately 2,100 acres in Orange County, California.
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