Financial Comparison: Ryland Group (RYL) & Beazer Homes USA (BZH)

Ryland Group (NYSE: RYL) and Beazer Homes USA (NYSE:BZH) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Profitability

This table compares Ryland Group and Beazer Homes USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ryland Group 6.52% 14.91% 5.79%
Beazer Homes USA -0.14% 3.01% 0.88%

Insider & Institutional Ownership

80.7% of Beazer Homes USA shares are owned by institutional investors. 7.6% of Beazer Homes USA shares are owned 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.

Valuation and Earnings

This table compares Ryland Group and Beazer Homes USA’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ryland Group N/A N/A N/A N/A N/A
Beazer Homes USA $1.88 billion 0.33 $74.43 million ($0.08) -240.97

Beazer Homes USA has higher revenue and earnings than Ryland Group.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ryland Group and Beazer Homes USA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ryland Group 0 0 0 0 N/A
Beazer Homes USA 1 4 1 0 2.00

Beazer Homes USA has a consensus price target of $15.13, indicating a potential downside of 21.55%. Given Beazer Homes USA’s higher possible upside, analysts clearly believe Beazer Homes USA is more favorable than Ryland Group.

Summary

Beazer Homes USA beats Ryland Group on 5 of the 8 factors compared between the two stocks.

Ryland Group Company Profile

The Ryland Group, Inc. is a homebuilder and a mortgage-finance company. RMC Mortgage Corporation and its subsidiaries (RMCMC) and Ryland Mortgage Company provides mortgage financing and related services for more than 255,000 homebuyers. The Company consists of six reportable segments: four geographically determined homebuilding regions; financial services, and corporate. The Company’s business is conducted and located in the United States, and its operations span all aspects of the homebuying process from design, construction and sale to mortgage origination, title and escrow services. The Company generally builds homes for entry-level buyers and first and second-time move-up buyers. The financial services segment provides mortgage-related products and services, as well as title and escrow services, to its homebuyers. Corporate is a non-operating business segment, which is engaged in supporting operations.

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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