Taylor Morrison Home (NYSE: TMHC) and TRI Pointe Group (NYSE:TPH) are both mid-cap construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
Valuation and Earnings
This table compares Taylor Morrison Home and TRI Pointe Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Taylor Morrison Home||$3.89 billion||0.62||$91.21 million||$1.98||10.82|
|TRI Pointe Group||$2.81 billion||0.93||$187.19 million||$1.42||12.05|
TRI Pointe Group has lower revenue, but higher earnings than Taylor Morrison Home. Taylor Morrison Home is trading at a lower price-to-earnings ratio than TRI Pointe Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Taylor Morrison Home has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, TRI Pointe Group has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Taylor Morrison Home and TRI Pointe Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taylor Morrison Home||0||3||6||0||2.67|
|TRI Pointe Group||0||4||5||0||2.56|
Taylor Morrison Home presently has a consensus price target of $29.14, indicating a potential upside of 36.05%. TRI Pointe Group has a consensus price target of $19.00, indicating a potential upside of 11.05%. Given Taylor Morrison Home’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Taylor Morrison Home is more favorable than TRI Pointe Group.
This table compares Taylor Morrison Home and TRI Pointe Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taylor Morrison Home||3.24%||7.23%||3.88%|
|TRI Pointe Group||7.40%||13.55%||6.67%|
Insider & Institutional Ownership
99.2% of Taylor Morrison Home shares are held by institutional investors. 2.4% of Taylor Morrison Home shares are held by company insiders. Comparatively, 1.7% of TRI Pointe Group shares are held by company 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.
Taylor Morrison Home Company Profile
Taylor Morrison Home Corporation operates as a public homebuilder in the United States. The company designs, builds, and sells single-family detached and attached homes; and develops lifestyle and master-planned communities. It operates under the Taylor Morrison and Darling Homes brand names in Arizona, California, Colorado, Florida, Georgia, Illinois, North Carolina and Texas. The company also offers mortgage and title services, as well as financial services. Taylor Morrison Home Corporation was founded in 1936 and is headquartered in Scottsdale, Arizona.
TRI Pointe Group Company Profile
TRI Pointe Group, Inc. engages in the design, construction, and sale of single-family detached and attached homes in the United States. It operates a portfolio of six brands across eight states, including Maracay Homes in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California and Colorado; and Winchester Homes in Maryland and Virginia. The company sells its homes through own sales representatives and independent real estate brokers. It also provides financial services, such as mortgage financing, title, and property and casualty insurance agency services. The company was founded in 2009 and is headquartered in Irvine, California. TRI Pointe Group, Inc. is a subsidiary of Weyerhaeuser NR Company.
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