Gazit-Globe (NYSE: GZT) and Forestar Group (NYSE:FOR) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitabiliy, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Dividends

Gazit-Globe pays an annual dividend of $1.40 per share and has a dividend yield of 14.3%. Forestar Group does not pay a dividend.

Insider and Institutional Ownership

8.8% of Gazit-Globe shares are held by institutional investors. Comparatively, 84.2% of Forestar Group shares are held by institutional investors. 3.1% of Forestar Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Gazit-Globe and Forestar Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gazit-Globe N/A N/A N/A
Forestar Group 48.48% 16.18% 12.25%

Analyst Recommendations

This is a summary of current ratings and target prices for Gazit-Globe and Forestar Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gazit-Globe 0 1 3 0 2.75
Forestar Group 0 0 0 0 N/A

Gazit-Globe currently has a consensus target price of $12.75, suggesting a potential upside of 30.10%. Given Gazit-Globe’s higher possible upside, equities analysts plainly believe Gazit-Globe is more favorable than Forestar Group.

Volatility and Risk

Gazit-Globe has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Forestar Group has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gazit-Globe and Forestar Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gazit-Globe $1.38 billion 1.39 $781.99 million N/A N/A
Forestar Group $182.00 million 3.95 $44.26 million $2.08 8.25

Gazit-Globe has higher revenue and earnings than Forestar Group.

Summary

Forestar Group beats Gazit-Globe on 7 of the 13 factors compared between the two stocks.

About Gazit-Globe

Gazit-Globe Ltd. is a real estate company specialized in retail premises. The Company is engaged in the acquisition, development and management of properties. Its segments include Finland, Norway, Sweden, and Estonia and Denmark. It focuses on supermarket-anchored shopping centers in urban growth markets. It operates internationally through its publicly traded and privately held subsidiaries. It operates in more than 20 countries, and owns and manages approximately 430 properties with a gross leasable area of approximately 6.5 million square meters. The Company’s properties include Kista Galleria, Iso Omena, Potrero Center, Yorkville Village, Atrium Promenada, Serramonte Shopping Center, Galeria Dominikanska, Westbury Plaza, Northgate Centre, San Pelegrino Shopping Mall, G Tzameret, Kosice Optima Shopping Center, Coens Galerie, Parkway Mall, Rutherford Marketplace, Atrium Copernicus, Atrium Biala, Molo Shopping Center, Wentorf Shopping Center, Plaza Escuela and Mount Royal Village.

About Forestar Group

Forestar Group Inc. is a residential and mixed-use real estate development company. The Company operates through three segments. The Real Estate segment secures entitlements and develops infrastructure on its lands, for single-family residential and mixed-use communities. The Mineral resources segment is focused on its owned oil and gas mineral interests through promoting exploration, development and production activities. The Other segment manages its timber holdings, recreational leases and water resource initiatives. As of December 31, 2016, its core community development business had directly or through ventures interests in 50 residential and mixed-use projects consisting of 4,600 acres of real estate located in 10 states and 14 markets. As of December 31, 2016, its non-core assets included approximately 523,000 net acres of owned mineral assets, 19,000 acres of timberland and undeveloped land, four multifamily assets and approximately 20,000 acres of groundwater leases.

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