Head to Head Comparison: PulteGroup (PHM) vs. Brookfield Residential Properties (NYSE:BRP)

PulteGroup (NYSE: PHM) and Brookfield Residential Properties (NYSE:BRP) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PulteGroup and Brookfield Residential Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PulteGroup 1 7 5 0 2.31
Brookfield Residential Properties 0 0 3 0 3.00

PulteGroup presently has a consensus target price of $24.91, suggesting a potential upside of 0.28%. Brookfield Residential Properties has a consensus target price of $29.00, suggesting a potential upside of 20.83%. Given Brookfield Residential Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Residential Properties is more favorable than PulteGroup.

Dividends

PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Brookfield Residential Properties does not pay a dividend. PulteGroup pays out 20.0% of its earnings in the form of a dividend. Brookfield Residential Properties has increased its dividend for 3 consecutive years.

Profitability

This table compares PulteGroup and Brookfield Residential Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PulteGroup 7.35% 13.43% 6.22%
Brookfield Residential Properties 12.74% 18.70% 8.12%

Insider and Institutional Ownership

88.1% of PulteGroup shares are owned by institutional investors. 0.7% of PulteGroup shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares PulteGroup and Brookfield Residential Properties’ top-line 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
Brookfield Residential Properties N/A N/A N/A N/A N/A

PulteGroup has higher revenue and earnings than Brookfield Residential Properties.

Summary

Brookfield Residential Properties beats PulteGroup on 7 of the 12 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.

Brookfield Residential Properties Company Profile

Brookfield Residential Properties Inc. is a land developer and homebuilder with operations in Canada and the United States. The Company develops land to create master-planned communities and build and sell lots to third-party builders, as well as to its own homebuilding division. It also participates in real estate opportunities, including infill projects, mixed-use developments, infrastructure projects and joint ventures. It operates through three segments within North America: Canada, California and Central and Eastern United States. Its Canadian operations are in the Alberta and Ontario markets; California operations include Northern California (San Francisco Bay Area and Sacramento) and Southern California (Los Angeles/Southland and San Diego/Riverside), and Central and Eastern United States operations include Washington, D.C. Area, Colorado, Texas and Arizona. It is focused on land development and single family and multi-family homebuilding in the markets in which it operates.

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