Contrasting Green Brick Partners (NASDAQ:GRBK) & D. R. Horton (DHI)

D. R. Horton (NYSE: DHI) and Green Brick Partners (NASDAQ:GRBK) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for D. R. Horton and Green Brick Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
D. R. Horton 0 8 8 0 2.50
Green Brick Partners 0 0 0 0 N/A

D. R. Horton presently has a consensus price target of $47.80, indicating a potential downside of 8.15%. Given D. R. Horton’s higher probable upside, research analysts plainly believe D. R. Horton is more favorable than Green Brick Partners.

Profitability

This table compares D. R. Horton and Green Brick Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
D. R. Horton 7.37% 14.13% 8.69%
Green Brick Partners 7.05% 12.07% 8.95%

Volatility & Risk

D. R. Horton has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Green Brick Partners has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Institutional & Insider Ownership

83.9% of D. R. Horton shares are owned by institutional investors. Comparatively, 79.7% of Green Brick Partners shares are owned by institutional investors. 6.7% of D. R. Horton shares are owned by insiders. Comparatively, 53.5% of Green Brick Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares D. R. Horton and Green Brick Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
D. R. Horton $14.09 billion 1.39 $1.04 billion $2.74 18.99
Green Brick Partners $380.33 million 1.57 $23.75 million $0.63 18.73

D. R. Horton has higher revenue and earnings than Green Brick Partners. Green Brick Partners is trading at a lower price-to-earnings ratio than D. R. Horton, indicating that it is currently the more affordable of the two stocks.

Dividends

D. R. Horton pays an annual dividend of $0.50 per share and has a dividend yield of 1.0%. Green Brick Partners does not pay a dividend. D. R. Horton pays out 18.2% of its earnings in the form of a dividend. Green Brick Partners has increased its dividend for 6 consecutive years.

Summary

D. R. Horton beats Green Brick Partners on 10 of the 16 factors compared between the two stocks.

D. R. Horton Company Profile

D.R. Horton, Inc. is a homebuilding company. The Company constructed and sold homes in 27 states and 79 markets, as of September 30, 2015. The Company’s segments include its 39 homebuilding divisions, its financial services operations and its other business activities. In the homebuilding segment, the Company builds and sells single-family detached homes and attached homes, such as town homes, duplexes, triplexes and condominiums. The Company’s 39 homebuilding divisions are aggregated into six segments: East Region, South Central Region, Midwest Region, West Region, Southwest Region and Southeast Region. In the financial services segment, the Company sells mortgages and collects fees for title insurance agency and closing services. The Company has subsidiaries that conduct insurance-related operations; construct and own income-producing rental properties; own non-residential real estate, including ranch land and improvements, and own and operate oil and gas-related assets.

Green Brick Partners Company Profile

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.

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