Green Brick Partners (NASDAQ: GRBK) and Beazer Homes USA (NYSE:BZH) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.
Earnings & Valuation
This table compares Green Brick Partners and Beazer Homes USA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Green Brick Partners||$415.72 million||1.18||$55.33 million||$0.58||17.24|
|Beazer Homes USA||$1.88 billion||0.26||$74.43 million||($0.08)||-194.60|
Beazer Homes USA has higher revenue and earnings than Green Brick Partners. Beazer Homes USA is trading at a lower price-to-earnings ratio than Green Brick Partners, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Green Brick Partners has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Beazer Homes USA has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500.
Institutional & Insider Ownership
82.7% of Green Brick Partners shares are held by institutional investors. Comparatively, 81.0% of Beazer Homes USA shares are held by institutional investors. 53.1% of Green Brick Partners shares are held by company insiders. Comparatively, 7.6% of Beazer Homes USA shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Green Brick Partners and Beazer Homes USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Green Brick Partners||6.69%||11.30%||8.33%|
|Beazer Homes USA||1.49%||4.44%||1.30%|
This is a breakdown of current ratings and price targets for Green Brick Partners and Beazer Homes USA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Green Brick Partners||0||0||0||0||N/A|
|Beazer Homes USA||1||4||0||0||1.80|
Beazer Homes USA has a consensus target price of $13.17, indicating a potential downside of 15.44%. Given Beazer Homes USA’s higher possible upside, analysts plainly believe Beazer Homes USA is more favorable than Green Brick Partners.
Green Brick Partners beats Beazer Homes USA on 7 of the 12 factors compared between the two stocks.
About Green Brick Partners
Green Brick Partners, Inc. operates in the real estate industry. The Company operates through two segments. The builder operations segment includes its controlled builders results, which include building and selling single-family detached homes and townhomes that are designed and built to meet local customer preferences, and the sale of lots. Builder operations consist of three operating segments: Texas, Georgia, and corporate and other. Corporate operations segment develops and implements strategic initiatives and supports its builder operations and land development by centralizing certain administrative functions, such as finance, treasury, information technology and human resources. The land development segment includes operations related to the acquisition and development of land, which is sold to its controlled builders and third-party homebuilders. As of December 31, 2016, it had owned or controlled over 5,200 home sites in various locations in the Dallas and Atlanta markets.
About Beazer Homes USA
Beazer Homes USA, Inc. is a geographically diversified homebuilder. As of September 30, 2016, the Company had operations in 13 states within over three geographic regions in the United States. The Company’s segments include West, East and Southeast. The Company markets and sells its products through its Website, www.beazer.com; mobile site, m.beazer.com; real estate listing sites, online advertising, including search engine marketing and display advertising, social media, video, brochures, direct marketing and out-of-home advertising, including billboards and signage, as well as other activities. It offers lender choice and personalization. The Company’s Choice Plans allows buyers to choose living areas, such as the kitchen and master bathroom. Its West segment includes Arizona, California, Nevada and Texas. Its East segment includes Indiana, Maryland/Delaware, Tennessee and Virginia. Its Southeast segment includes Florida, Georgia, North Carolina and South Carolina.
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