Green Brick Partners (NASDAQ: GRBK) and PulteGroup (NYSE:PHM) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Insider & Institutional Ownership
82.6% of Green Brick Partners shares are owned by institutional investors. Comparatively, 88.1% of PulteGroup shares are owned by institutional investors. 53.1% of Green Brick Partners shares are owned by insiders. Comparatively, 0.7% of PulteGroup shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings for Green Brick Partners and PulteGroup, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Green Brick Partners||0||0||0||0||N/A|
PulteGroup has a consensus target price of $24.91, indicating a potential downside of 1.47%. Given PulteGroup’s higher probable upside, analysts clearly believe PulteGroup is more favorable than Green Brick Partners.
Earnings & Valuation
This table compares Green Brick Partners and PulteGroup’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Green Brick Partners||$415.72 million||1.15||$55.33 million||$0.58||16.72|
|PulteGroup||$8.09 billion||0.94||$1.11 billion||$1.80||14.04|
PulteGroup has higher revenue and earnings than Green Brick Partners. PulteGroup is trading at a lower price-to-earnings ratio than Green Brick Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Green Brick Partners and PulteGroup’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Green Brick Partners||6.69%||11.30%||8.33%|
PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Green Brick Partners does not pay a dividend. PulteGroup pays out 20.0% of its earnings in the form of a dividend. PulteGroup has raised its dividend for 3 consecutive years.
Risk and Volatility
Green Brick Partners has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, PulteGroup has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
PulteGroup beats Green Brick Partners on 11 of the 16 factors compared between the two stocks.
About Green Brick Partners
Green Brick Partners, Inc. operates in the real estate industry. The Company operates through two segments. The builder operations segment includes its controlled builders results, which include building and selling single-family detached homes and townhomes that are designed and built to meet local customer preferences, and the sale of lots. Builder operations consist of three operating segments: Texas, Georgia, and corporate and other. Corporate operations segment develops and implements strategic initiatives and supports its builder operations and land development by centralizing certain administrative functions, such as finance, treasury, information technology and human resources. The land development segment includes operations related to the acquisition and development of land, which is sold to its controlled builders and third-party homebuilders. As of December 31, 2016, it had owned or controlled over 5,200 home sites in various locations in the Dallas and Atlanta markets.
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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