D.R. Horton (DHI) versus Brookfield Residential Properties (BRP) Critical Review
D.R. Horton (NYSE: DHI) and Brookfield Residential Properties (NYSE:BRP) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitabiliy and analyst recommendations.
D.R. Horton pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Brookfield Residential Properties does not pay a dividend. D.R. Horton pays out 15.6% of its earnings in the form of a dividend. Brookfield Residential Properties has raised its dividend for 5 consecutive years.
This is a summary of current ratings and recommmendations for D.R. Horton and Brookfield Residential Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Residential Properties||0||0||3||0||3.00|
D.R. Horton presently has a consensus target price of $34.96, suggesting a potential upside of 2.98%. Brookfield Residential Properties has a consensus target price of $29.00, suggesting a potential upside of 20.83%. Given Brookfield Residential Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Brookfield Residential Properties is more favorable than D.R. Horton.
Valuation and Earnings
This table compares D.R. Horton and Brookfield Residential Properties’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|D.R. Horton||$13.13 billion||0.97||$1.58 billion||$2.56||13.26|
|Brookfield Residential Properties||N/A||N/A||N/A||N/A||N/A|
D.R. Horton has higher revenue and earnings than Brookfield Residential Properties.
Insider & Institutional Ownership
82.9% of D.R. Horton shares are held by institutional investors. 7.2% of D.R. Horton shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares D.R. Horton and Brookfield Residential Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Residential Properties||12.74%||18.70%||8.12%|
D.R. Horton Company Profile
D.R. Horton, Inc. is a homebuilding company. The Company constructed and sold homes in 27 states and 79 markets, as of September 30, 2015. The Company’s segments include its 39 homebuilding divisions, its financial services operations and its other business activities. In the homebuilding segment, the Company builds and sells single-family detached homes and attached homes, such as town homes, duplexes, triplexes and condominiums. The Company’s 39 homebuilding divisions are aggregated into six segments: East Region, South Central Region, Midwest Region, West Region, Southwest Region and Southeast Region. In the financial services segment, the Company sells mortgages and collects fees for title insurance agency and closing services. The Company has subsidiaries that conduct insurance-related operations; construct and own income-producing rental properties; own non-residential real estate, including ranch land and improvements, and own and operate oil and gas-related assets.
Brookfield Residential Properties Company Profile
Brookfield Residential Properties Inc. is a land developer and homebuilder with operations in Canada and the United States. The Company develops land to create master-planned communities and build and sell lots to third-party builders, as well as to its own homebuilding division. It also participates in real estate opportunities, including infill projects, mixed-use developments, infrastructure projects and joint ventures. It operates through three segments within North America: Canada, California and Central and Eastern United States. Its Canadian operations are in the Alberta and Ontario markets; California operations include Northern California (San Francisco Bay Area and Sacramento) and Southern California (Los Angeles/Southland and San Diego/Riverside), and Central and Eastern United States operations include Washington, D.C. Area, Colorado, Texas and Arizona. It is focused on land development and single family and multi-family homebuilding in the markets in which it operates.
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