Forestar Group (NYSE: FOR) and Brookfield Property Partners (NASDAQ:BPY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
This is a summary of current ratings for Forestar Group and Brookfield Property Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Property Partners||0||1||2||0||2.67|
Earnings and Valuation
This table compares Forestar Group and Brookfield Property Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Forestar Group||$197.31 million||4.75||$58.64 million||$1.79||12.49|
|Brookfield Property Partners||$5.19 billion||1.09||$660.00 million||$0.24||91.88|
Brookfield Property Partners has higher revenue and earnings than Forestar Group. Forestar Group is trading at a lower price-to-earnings ratio than Brookfield Property Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Forestar Group and Brookfield Property Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Property Partners||11.89%||1.66%||0.70%|
Institutional and Insider Ownership
80.2% of Forestar Group shares are held by institutional investors. Comparatively, 61.7% of Brookfield Property Partners shares are held by institutional investors. 3.1% of Forestar Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Brookfield Property Partners pays an annual dividend of $1.18 per share and has a dividend yield of 5.4%. Forestar Group does not pay a dividend. Brookfield Property Partners pays out 491.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Forestar Group has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Brookfield Property Partners has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
Forestar Group beats Brookfield Property Partners on 9 of the 15 factors compared between the two stocks.
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.
About Brookfield Property Partners
Brookfield Property Partners L.P. is a diversified global real estate company. The Company owns, operates and develops a portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage and student housing assets. Its partnership is Brookfield Asset Management Inc.’s public commercial property entity and the primary vehicle through which it invests in real estate on a global basis. It operates through four segments: Core Office, Core Retail, Opportunistic and Corporate. As of December 31, 2016, its Core Office segment consisted of interests in 142 office properties totaling 99 million square feet. As of December 31, 2016, its Core Retail segment consisted of interests in 127 regional malls and urban retail properties. As of December 31, 2016, its Opportunistic segment consisted of 107 office properties comprising approximately 29 million square feet of office space in the United States, United Kingdom, Brazil and Asia.
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