Brookfield Property Partners (NASDAQ: BPY) and Forestar Group (NYSE:FOR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Risk and Volatility
Brookfield Property Partners has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Forestar Group has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.
Valuation & Earnings
This table compares Brookfield Property Partners and Forestar Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Property Partners||$5.19 billion||1.06||$660.00 million||$0.24||89.71|
|Forestar Group||$197.31 million||4.64||$58.64 million||$1.79||12.21|
Brookfield Property Partners has higher revenue and earnings than Forestar Group. Forestar Group is trading at a lower price-to-earnings ratio than Brookfield Property Partners, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
61.7% of Brookfield Property Partners shares are owned by institutional investors. Comparatively, 80.2% of Forestar Group shares are owned by institutional investors. 3.1% of Forestar Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Brookfield Property Partners and Forestar Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Property Partners||0||1||2||0||2.67|
Brookfield Property Partners presently has a consensus price target of $25.17, suggesting a potential upside of 16.89%. Given Brookfield Property Partners’ higher probable upside, equities research analysts clearly believe Brookfield Property Partners is more favorable than Forestar Group.
Brookfield Property Partners pays an annual dividend of $1.18 per share and has a dividend yield of 5.5%. Forestar Group does not pay a dividend. Brookfield Property Partners pays out 491.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Brookfield Property Partners and Forestar Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Property Partners||11.89%||1.66%||0.70%|
Forestar Group beats Brookfield Property Partners on 9 of the 15 factors compared between the two stocks.
Brookfield Property Partners Company Profile
Brookfield Property Partners L.P. is a diversified global real estate company. The Company owns, operates and develops a portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage and student housing assets. Its partnership is Brookfield Asset Management Inc.’s public commercial property entity and the primary vehicle through which it invests in real estate on a global basis. It operates through four segments: Core Office, Core Retail, Opportunistic and Corporate. As of December 31, 2016, its Core Office segment consisted of interests in 142 office properties totaling 99 million square feet. As of December 31, 2016, its Core Retail segment consisted of interests in 127 regional malls and urban retail properties. As of December 31, 2016, its Opportunistic segment consisted of 107 office properties comprising approximately 29 million square feet of office space in the United States, United Kingdom, Brazil and Asia.
Forestar Group Company Profile
Forestar Group Inc. is a residential and mixed-use real estate development company. The Company operates through three segments. The Real Estate segment secures entitlements and develops infrastructure on its lands, for single-family residential and mixed-use communities. The Mineral resources segment is focused on its owned oil and gas mineral interests through promoting exploration, development and production activities. The Other segment manages its timber holdings, recreational leases and water resource initiatives. As of December 31, 2016, its core community development business had directly or through ventures interests in 50 residential and mixed-use projects consisting of 4,600 acres of real estate located in 10 states and 14 markets. As of December 31, 2016, its non-core assets included approximately 523,000 net acres of owned mineral assets, 19,000 acres of timberland and undeveloped land, four multifamily assets and approximately 20,000 acres of groundwater leases.
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