Analyzing Ryland Group (RYL) and Its Rivals

Ryland Group (NYSE: RYL) is one of 23 publicly-traded companies in the “Homebuilding” industry, but how does it contrast to its rivals? We will compare Ryland Group to related businesses based on the strength of its profitability, risk, analyst recommendations, dividends, institutional ownership, valuation and earnings.

Risk and Volatility

Ryland Group has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Ryland Group’s rivals have a beta of 1.52, meaning that their average stock price is 52% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ryland Group and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ryland Group 0 0 0 0 N/A
Ryland Group Competitors 283 1683 1927 38 2.44

As a group, “Homebuilding” companies have a potential downside of 0.93%. Given Ryland Group’s rivals higher probable upside, analysts clearly believe Ryland Group has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

78.9% of shares of all “Homebuilding” companies are held by institutional investors. 13.1% of shares of all “Homebuilding” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Ryland Group and its rivals’ 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%
Ryland Group Competitors 9.72% 15.24% 8.19%

Earnings & Valuation

This table compares Ryland Group and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ryland Group N/A N/A 12.52
Ryland Group Competitors $3.83 billion $231.12 million 495.93

Ryland Group’s rivals have higher revenue and earnings than Ryland Group. Ryland Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Ryland Group rivals beat Ryland Group on 7 of the 8 factors compared.

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.

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