Brookfield Residential Properties (NYSE: BRP) and Beazer Homes USA (NYSE:BZH) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitabiliy, risk and earnings.

Insider and Institutional Ownership

81.4% of Beazer Homes USA shares are held by institutional investors. 7.6% of Beazer Homes USA shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Brookfield Residential Properties and Beazer Homes USA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Residential Properties 0 0 3 0 3.00
Beazer Homes USA 1 3 1 0 2.00

Brookfield Residential Properties currently has a consensus price target of $29.00, suggesting a potential upside of 20.83%. Beazer Homes USA has a consensus price target of $13.17, suggesting a potential downside of 3.47%. Given Brookfield Residential Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Brookfield Residential Properties is more favorable than Beazer Homes USA.

Profitability

This table compares Brookfield Residential Properties and Beazer Homes USA’s 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%
Beazer Homes USA -0.22% 4.08% 1.18%

Earnings & Valuation

This table compares Brookfield Residential Properties and Beazer Homes USA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brookfield Residential Properties N/A N/A N/A N/A N/A
Beazer Homes USA $1.86 billion 0.23 $57.50 million ($0.12) -113.66

Beazer Homes USA has higher revenue and earnings than Brookfield Residential Properties.

Summary

Brookfield Residential Properties beats Beazer Homes USA on 6 of the 9 factors compared between the two stocks.

About Brookfield Residential Properties

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.

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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