Gafisa (NYSE: GFA) is one of 66 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it compare to its peers? We will compare Gafisa to related companies based on the strength of its institutional ownership, valuation, analyst recommendations, earnings, profitability, dividends and risk.

Institutional & Insider Ownership

3.8% of Gafisa shares are held by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are held by institutional investors. 41.1% of shares of all “Real Estate Development & Operations” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Gafisa and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gafisa -195.79% -34.52% -11.97%
Gafisa Competitors -6.00% -1.26% 1.35%

Valuation and Earnings

This table compares Gafisa and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Gafisa $263.80 million -$333.60 million -0.34
Gafisa Competitors $438.91 million $33.86 million 1,061.66

Gafisa’s peers have higher revenue and earnings than Gafisa. Gafisa is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Gafisa has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Gafisa’s peers have a beta of 0.88, meaning that their average stock price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Gafisa and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gafisa 2 0 0 0 1.00
Gafisa Competitors 45 241 676 9 2.67

As a group, “Real Estate Development & Operations” companies have a potential upside of 17.00%. Given Gafisa’s peers stronger consensus rating and higher probable upside, analysts plainly believe Gafisa has less favorable growth aspects than its peers.

Summary

Gafisa peers beat Gafisa on 11 of the 12 factors compared.

Gafisa Company Profile

Gafisa S.A. is a diversified national homebuilder. The Company’s segments are Gafisa (for ventures targeted at high and medium income) and Tenda (for ventures targeted at low income). The Company’s brands include Tenda, which serves the affordable entry-level housing segments, Gafisa, which offers a range of residential options to the mid to higher income segments and Alphaville (equity method investment), which focuses on the identification, development and sale of residential communities. In addition, it provides construction services to third parties on certain developments in the Gafisa segment where it retains an equity interest. Its real estate business activities include developments for sale of residential units, land subdivisions and commercial buildings; construction services, and sale of units through its brokerage subsidiaries, Gafisa Vendas Intermediacao Imobiliaria Ltda and Gafisa Vendas in Rio de Janeiro, jointly referred to as Gafisa Vendas.

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