Gafisa (OTCMKTS:GFASY) versus D.R. Horton (NYSE:DHI) Head-To-Head Comparison

Gafisa (OTCMKTS:GFASY) and D.R. Horton (NYSE:DHI) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Volatility and Risk

Gafisa has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Gafisa and D.R. Horton”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gafisa	N/A	N/A	N/A	N/A	N/A
D.R. Horton	$36.80 billion	1.07	$4.76 billion	$13.21	9.75

D.R. Horton has higher revenue and earnings than Gafisa.

Profitability

This table compares Gafisa and D.R. Horton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gafisa	N/A	N/A	N/A
D.R. Horton	12.15%	16.95%	12.09%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gafisa	0	0	0	0	0.00
D.R. Horton	2	6	6	1	2.40

D.R. Horton has a consensus target price of $151.15, indicating a potential upside of 17.38%. Given D.R. Horton’s stronger consensus rating and higher possible upside, analysts plainly believe D.R. Horton is more favorable than Gafisa.

Insider & Institutional Ownership

90.6% of D.R. Horton shares are held by institutional investors. 3.1% of Gafisa shares are held by company insiders. Comparatively, 0.5% of D.R. Horton shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

D.R. Horton beats Gafisa on 10 of the 11 factors compared between the two stocks.

About Gafisa

Gafisa S.A. operates as a development and construction company under the Gafisa brand name in Brazil. The company is involved in residential, commercial, and hotel projects. It also provides technical consultancy services, and real estate management and construction services to third parties. Gafisa S.A. was founded in 1954 and is headquartered in São Paulo, Brazil.

About D.R. Horton

D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.