Green Brick Partners (GRBK) versus Beazer Homes USA (BZH) Critical Analysis
Beazer Homes USA (NYSE: BZH) and Green Brick Partners (NASDAQ:GRBK) are both small-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitabiliy, valuation, risk, institutional ownership, earnings and analyst recommendations.
Volatility and Risk
Beazer Homes USA has a beta of 2.79, meaning that its stock price is 179% more volatile than the S&P 500. Comparatively, Green Brick Partners has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.
This is a breakdown of recent ratings for Beazer Homes USA and Green Brick Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Beazer Homes USA||1||3||1||0||2.00|
|Green Brick Partners||0||0||0||0||N/A|
Beazer Homes USA currently has a consensus target price of $13.17, indicating a potential upside of 0.20%. Given Beazer Homes USA’s higher probable upside, equities analysts plainly believe Beazer Homes USA is more favorable than Green Brick Partners.
Valuation & Earnings
This table compares Beazer Homes USA and Green Brick Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Beazer Homes USA||$1.86 billion||0.23||$57.50 million||($0.12)||-109.49|
|Green Brick Partners||$409.71 million||1.35||$54.21 million||$0.56||20.18|
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.
This table compares Beazer Homes USA and Green Brick Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Beazer Homes USA||-0.22%||4.08%||1.18%|
|Green Brick Partners||6.56%||11.23%||8.31%|
Insider and Institutional Ownership
81.5% of Beazer Homes USA shares are owned by institutional investors. Comparatively, 83.4% of Green Brick Partners shares are owned by institutional investors. 7.6% of Beazer Homes USA shares are owned by insiders. Comparatively, 53.1% of Green Brick Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Green Brick Partners beats Beazer Homes USA on 7 of the 12 factors compared between the two stocks.
Beazer Homes USA Company Profile
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.
Green Brick Partners Company Profile
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.
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