Green Brick Partners (GRBK) vs. Taylor Morrison Home (TMHC) Critical Analysis

Green Brick Partners (NASDAQ: GRBK) and Taylor Morrison Home (NYSE:TMHC) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Green Brick Partners and Taylor Morrison Home, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Brick Partners 0 0 0 0 N/A
Taylor Morrison Home 0 3 1 0 2.25

Taylor Morrison Home has a consensus price target of $24.00, indicating a potential upside of 2.78%. Given Taylor Morrison Home’s higher probable upside, analysts clearly believe Taylor Morrison Home is more favorable than Green Brick Partners.

Volatility and Risk

Green Brick Partners has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Taylor Morrison Home has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Institutional and Insider Ownership

79.7% of Green Brick Partners shares are held by institutional investors. Comparatively, 59.2% of Taylor Morrison Home shares are held by institutional investors. 53.5% of Green Brick Partners shares are held by insiders. Comparatively, 2.4% of Taylor Morrison Home shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Green Brick Partners and Taylor Morrison Home’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Brick Partners 7.05% 12.07% 8.95%
Taylor Morrison Home 2.41% 4.18% 2.21%

Valuation and Earnings

This table compares Green Brick Partners and Taylor Morrison Home’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Brick Partners $380.33 million 1.49 $23.75 million $0.63 17.78
Taylor Morrison Home $3.55 billion 0.79 $52.61 million $1.84 12.69

Taylor Morrison Home has higher revenue and earnings than Green Brick Partners. Taylor Morrison Home is trading at a lower price-to-earnings ratio than Green Brick Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Green Brick Partners beats Taylor Morrison Home on 7 of the 13 factors compared between the two stocks.

Green Brick Partners Company Profile

Green Brick Partners, Inc. operates in the real estate industry. The Company operates through two segments. The builder operations segment includes its controlled builders results, which include building and selling single-family detached homes and townhomes that are designed and built to meet local customer preferences, and the sale of lots. Builder operations consist of three operating segments: Texas, Georgia, and corporate and other. Corporate operations segment develops and implements strategic initiatives and supports its builder operations and land development by centralizing certain administrative functions, such as finance, treasury, information technology and human resources. The land development segment includes operations related to the acquisition and development of land, which is sold to its controlled builders and third-party homebuilders. As of December 31, 2016, it had owned or controlled over 5,200 home sites in various locations in the Dallas and Atlanta markets.

Taylor Morrison Home Company Profile

Taylor Morrison Home Corporation is a homebuilder, which designs, builds and sells single-family detached and attached homes. The Company is also a land developer, with a portfolio of lifestyle and master-planned communities. Its segments include East, which includes Atlanta, Charlotte, North Florida, Raleigh, Southwest Florida and Tampa; Central, which includes Austin, Dallas, and Houston (each of the Dallas and Houston markets include both a Taylor Morrison division and a Darling Homes division); West, which includes Bay Area, Chicago, Denver, Phoenix, Sacramento and Southern California, and Mortgage Operations, which includes Taylor Morrison Home Funding, LLC (TMHF) and Inspired Title Services, LLC (Inspired Title). It operates under the Taylor Morrison and Darling Homes brand names. The Company also provides financial services to customers through its mortgage subsidiary, TMHF, and title insurance and closing settlement services through its title company, Inspired Title.

Receive News & Ratings for Green Brick Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Green Brick Partners and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply