Forestar Group (NYSE:FOR) and Cyrela Brazil Realty (OTCMKTS:CYRBY) Head-To-Head Comparison

Cyrela Brazil Realty (OTCMKTS:CYRBY) and Forestar Group (NYSE:FOR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Earnings and Valuation

This table compares Cyrela Brazil Realty and Forestar Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyrela Brazil Realty	$1.48 billion	1.51	$305.72 million	$0.88	6.60
Forestar Group	$1.66 billion	0.93	$167.90 million	$3.27	9.30

Cyrela Brazil Realty has higher earnings, but lower revenue than Forestar Group. Cyrela Brazil Realty is trading at a lower price-to-earnings ratio than Forestar Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cyrela Brazil Realty and Forestar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyrela Brazil Realty	21.07%	17.20%	7.84%
Forestar Group	9.90%	9.76%	5.39%

Volatility and Risk

Cyrela Brazil Realty has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Forestar Group has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Insider and Institutional Ownership

35.5% of Forestar Group shares are owned by institutional investors. 0.5% of Forestar Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Cyrela Brazil Realty and Forestar Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyrela Brazil Realty	0	0	0	0	0.00
Forestar Group	0	2	4	1	2.86

Forestar Group has a consensus price target of $32.40, indicating a potential upside of 6.57%. Given Forestar Group’s stronger consensus rating and higher possible upside, analysts plainly believe Forestar Group is more favorable than Cyrela Brazil Realty.

Summary

Forestar Group beats Cyrela Brazil Realty on 10 of the 15 factors compared between the two stocks.

About Cyrela Brazil Realty

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.

About Forestar Group

Forestar Group Inc. operates as a residential lot development company in the United States. The company acquires land and develops infrastructure for single-family residential communities. It sells its residential single-family finished lots to local, regional, and national homebuilders. The company was incorporated in 2005 and is headquartered in Arlington, Texas. Forestar Group Inc. operates as a subsidiary of D.R. Horton, Inc.