Brookfield Residential Properties (NYSE: BRP) and Beazer Homes USA (NYSE:BZH) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Valuation and Earnings
This table compares Brookfield Residential Properties and Beazer Homes USA’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Residential Properties||N/A||N/A||N/A||N/A||N/A|
|Beazer Homes USA||$1.88 billion||0.26||$74.43 million||($0.08)||-194.60|
Beazer Homes USA has higher revenue and earnings than Brookfield Residential Properties.
Institutional & Insider Ownership
81.0% of Beazer Homes USA shares are held by institutional investors. 7.6% of Beazer Homes USA shares are held 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 table compares Brookfield Residential Properties and Beazer Homes USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Residential Properties||12.74%||18.70%||8.12%|
|Beazer Homes USA||1.49%||4.44%||1.30%|
This is a breakdown of recent recommendations and price targets for Brookfield Residential Properties and Beazer Homes USA, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Residential Properties||0||0||3||0||3.00|
|Beazer Homes USA||1||4||0||0||1.80|
Brookfield Residential Properties currently has a consensus price target of $29.00, suggesting a potential upside of 20.83%. Beazer Homes USA has a consensus price target of $13.17, suggesting a potential downside of 15.44%. Given Brookfield Residential Properties’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Brookfield Residential Properties is more favorable than Beazer Homes USA.
Brookfield Residential Properties beats Beazer Homes USA on 6 of the 9 factors compared between the two stocks.
Brookfield Residential Properties Company Profile
Brookfield Residential Properties Inc. is a land developer and homebuilder with operations in Canada and the United States. The Company develops land to create master-planned communities and build and sell lots to third-party builders, as well as to its own homebuilding division. It also participates in real estate opportunities, including infill projects, mixed-use developments, infrastructure projects and joint ventures. It operates through three segments within North America: Canada, California and Central and Eastern United States. Its Canadian operations are in the Alberta and Ontario markets; California operations include Northern California (San Francisco Bay Area and Sacramento) and Southern California (Los Angeles/Southland and San Diego/Riverside), and Central and Eastern United States operations include Washington, D.C. Area, Colorado, Texas and Arizona. It is focused on land development and single family and multi-family homebuilding in the markets in which it operates.
Beazer Homes USA Company Profile
Beazer Homes USA, Inc. is a geographically diversified homebuilder. As of September 30, 2016, the Company had operations in 13 states within over three geographic regions in the United States. The Company’s segments include West, East and Southeast. The Company markets and sells its products through its Website, www.beazer.com; mobile site, m.beazer.com; real estate listing sites, online advertising, including search engine marketing and display advertising, social media, video, brochures, direct marketing and out-of-home advertising, including billboards and signage, as well as other activities. It offers lender choice and personalization. The Company’s Choice Plans allows buyers to choose living areas, such as the kitchen and master bathroom. Its West segment includes Arizona, California, Nevada and Texas. Its East segment includes Indiana, Maryland/Delaware, Tennessee and Virginia. Its Southeast segment includes Florida, Georgia, North Carolina and South Carolina.
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