Green Brick Partners (GRBK) versus PulteGroup (PHM) Head-To-Head Comparison

PulteGroup (NYSE: PHM) and Green Brick Partners (NASDAQ:GRBK) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Dividends

PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Green Brick Partners does not pay a dividend. PulteGroup pays out 20.0% of its earnings in the form of a dividend. Green Brick Partners has raised its dividend for 3 consecutive years.

Insider and Institutional Ownership

92.5% of PulteGroup shares are held by institutional investors. Comparatively, 82.7% of Green Brick Partners shares are held by institutional investors. 0.7% of PulteGroup shares are held by company insiders. Comparatively, 53.1% of Green Brick Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares PulteGroup and Green Brick Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PulteGroup $8.09 billion 0.93 $1.11 billion $1.80 13.80
Green Brick Partners $415.72 million 1.18 $55.33 million $0.58 17.24

PulteGroup has higher revenue and earnings than Green Brick Partners. PulteGroup 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.

Volatility & Risk

PulteGroup has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Green Brick Partners has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for PulteGroup and Green Brick Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PulteGroup 1 7 5 0 2.31
Green Brick Partners 0 0 0 0 N/A

PulteGroup presently has a consensus price target of $24.91, indicating a potential upside of 0.28%. Given PulteGroup’s higher possible upside, research analysts clearly believe PulteGroup is more favorable than Green Brick Partners.

Profitability

This table compares PulteGroup and Green Brick Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PulteGroup 7.35% 13.43% 6.22%
Green Brick Partners 6.69% 11.30% 8.33%

Summary

PulteGroup beats Green Brick Partners on 9 of the 16 factors compared between the two stocks.

PulteGroup Company Profile

PulteGroup, Inc. is a homebuilder in the United States. The Company’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Its Financial Services operations consist principally of mortgage banking and title operations. The Company conducts its financial services business, through Pulte Mortgage LLC (Pulte Mortgage) and other subsidiaries. Pulte Mortgage arranges financing through the origination of mortgage loans. The Company’s subsidiaries are engaged in the homebuilding business. It offers a product line to meet the needs of homebuyers in its focused markets. Through its brands, which include Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the Company offers a range of home designs, including single-family detached, townhouses, condominiums and duplexes.

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.

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