Taylor Morrison Home Corp (NASDAQ: TMHC) and PICO Holdings (NASDAQ:PICO) are both small-cap cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitabiliy, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Taylor Morrison Home Corp and PICO Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taylor Morrison Home Corp 0 9 1 0 2.10
PICO Holdings 0 0 0 0 N/A

Taylor Morrison Home Corp presently has a consensus target price of $20.25, indicating a potential downside of 16.04%. Given Taylor Morrison Home Corp’s higher possible upside, equities research analysts plainly believe Taylor Morrison Home Corp is more favorable than PICO Holdings.

Earnings & Valuation

This table compares Taylor Morrison Home Corp and PICO Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Taylor Morrison Home Corp $3.67 billion 0.34 $337.53 million N/A N/A
PICO Holdings $383.39 million 1.01 -$181,999.00 ($0.46) -36.41

Taylor Morrison Home Corp has higher revenue and earnings than PICO Holdings.

Profitability

This table compares Taylor Morrison Home Corp and PICO Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taylor Morrison Home Corp 4.63% 6.12% 3.41%
PICO Holdings -3.26% -1.79% -1.14%

Insider and Institutional Ownership

63.3% of PICO Holdings shares are owned by institutional investors. 4.7% of PICO Holdings shares are owned by 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.

Summary

Taylor Morrison Home Corp beats PICO Holdings on 7 of the 10 factors compared between the two stocks.

About Taylor Morrison Home Corp

Taylor Morrison Home Corporation is a homebuilder, which designs, builds and sells single-family detached and attached homes. The Company is also a land developer, with a portfolio of lifestyle and master-planned communities. Its segments include East, which includes Atlanta, Charlotte, North Florida, Raleigh, Southwest Florida and Tampa; Central, which includes Austin, Dallas, and Houston (each of the Dallas and Houston markets include both a Taylor Morrison division and a Darling Homes division); West, which includes Bay Area, Chicago, Denver, Phoenix, Sacramento and Southern California, and Mortgage Operations, which includes Taylor Morrison Home Funding, LLC (TMHF) and Inspired Title Services, LLC (Inspired Title). It operates under the Taylor Morrison and Darling Homes brand names. The Company also provides financial services to customers through its mortgage subsidiary, TMHF, and title insurance and closing settlement services through its title company, Inspired Title.

About PICO Holdings

PICO Holdings, Inc. (PICO) is a holding company. The Company’s segments include Water Resource and Water Storage Operations; Real Estate Operations, and Corporate. Its subsidiary, Vidler Water Company, Inc. (Vidler), owns water resources and water storage operations in the southwestern United States, with assets and operations in Nevada, Arizona, Colorado and New Mexico. The Real Estate Operations are conducted through UCP, Inc. (UCP), which is a homebuilder and land developer in markets located in California, Washington State, North Carolina, South Carolina and Tennessee. The Corporate segment includes its investments in small businesses, typically venture capital-type situations. As of December 31, 2016, the Company owned a membership interest in, and was the managing partner of, Fish Springs Ranch, LLC (FSR), which owned the Fish Springs Ranch and other properties totaling approximately 7,313 acres in Honey Lake Valley in Washoe County, approximately 40 miles north of Reno, Nevada.

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