Financial Review: Comstock Holding Companies (NASDAQ:CHCI) versus Gafisa (OTCMKTS:GFASY)

Gafisa (OTCMKTS:GFASY) and Comstock Holding Companies (NASDAQ:CHCI) are both small-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Gafisa and Comstock Holding Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gafisa	N/A	N/A	N/A
Comstock Holding Companies	28.35%	30.98%	25.69%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Gafisa and Comstock Holding Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gafisa	0	0	0	0	0.00
Comstock Holding Companies	0	0	1	0	3.00

Valuation and Earnings

This table compares Gafisa and Comstock Holding Companies”s top-line 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
Comstock Holding Companies	$51.29 million	2.69	$14.56 million	$1.51	9.09

Comstock Holding Companies has higher revenue and earnings than Gafisa.

Institutional and Insider Ownership

6.5% of Comstock Holding Companies shares are owned by institutional investors. 3.1% of Gafisa shares are owned by insiders. Comparatively, 36.2% of Comstock Holding Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Gafisa has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Comstock Holding Companies has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Summary

Comstock Holding Companies beats Gafisa on 8 of the 9 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 Comstock Holding Companies

Comstock Holding Companies, Inc. operates as a real estate asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region. The company acquires, develops, operates, and sells residential, commercial, and mixed-use properties. It also provides various asset and property management, development and construction management, and other real estate services to its asset-owning clients, which include primarily of institutional real estate investors, high net worth family offices, and governmental bodies. The company was formerly known as Comstock Homebuilding Companies, Inc. and changed its name to Comstock Holding Companies, Inc. in June 2012. Comstock Holding Companies, Inc. was founded in 1985 and is headquartered in Reston, Virginia.