Analyzing Brookfield Residential Properties (NYSE:BRP) & PulteGroup (PHM)
Brookfield Residential Properties (NYSE: BRP) and PulteGroup (NYSE:PHM) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitabiliy, valuation, risk, earnings and dividends.
Valuation and Earnings
This table compares Brookfield Residential Properties and PulteGroup’s gross revenue, earnings per share (EPS) 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|
|PulteGroup||$8.09 billion||0.95||$1.11 billion||$1.80||14.14|
PulteGroup has higher revenue and earnings than Brookfield Residential Properties.
PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Brookfield Residential Properties does not pay a dividend. PulteGroup pays out 20.0% of its earnings in the form of a dividend. PulteGroup has increased its dividend for 3 consecutive years.
This table compares Brookfield Residential Properties and PulteGroup’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%|
Institutional and Insider Ownership
92.5% of PulteGroup shares are held by institutional investors. 0.7% of PulteGroup shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Brookfield Residential Properties and PulteGroup, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Residential Properties||0||0||3||0||3.00|
Brookfield Residential Properties presently has a consensus target price of $29.00, indicating a potential upside of 20.83%. PulteGroup has a consensus target price of $24.91, indicating a potential downside of 2.16%. Given Brookfield Residential Properties’ stronger consensus rating and higher possible upside, equities analysts clearly believe Brookfield Residential Properties is more favorable than PulteGroup.
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.
PulteGroup Company Profile
PulteGroup, Inc. is a homebuilder in the United States. The Company’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Its Financial Services operations consist principally of mortgage banking and title operations. The Company conducts its financial services business, through Pulte Mortgage LLC (Pulte Mortgage) and other subsidiaries. Pulte Mortgage arranges financing through the origination of mortgage loans. The Company’s subsidiaries are engaged in the homebuilding business. It offers a product line to meet the needs of homebuyers in its focused markets. Through its brands, which include Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the Company offers a range of home designs, including single-family detached, townhouses, condominiums and duplexes.
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