Critical Contrast: Taylor Morrison Home (TMHC) and Its Rivals

Taylor Morrison Home (NYSE: TMHC) is one of 25 publicly-traded companies in the “Homebuilding” industry, but how does it compare to its rivals? We will compare Taylor Morrison Home to related companies based on the strength of its dividends, analyst recommendations, institutional ownership, profitability, earnings, valuation and risk.

Insider and Institutional Ownership

59.1% of Taylor Morrison Home shares are owned by institutional investors. Comparatively, 78.8% of shares of all “Homebuilding” companies are owned by institutional investors. 2.4% of Taylor Morrison Home shares are owned by insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Taylor Morrison Home has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Taylor Morrison Home’s rivals have a beta of 1.52, indicating that their average stock price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Taylor Morrison Home and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taylor Morrison Home 0 3 1 0 2.25
Taylor Morrison Home Competitors 287 1701 1944 38 2.44

Taylor Morrison Home currently has a consensus price target of $24.00, indicating a potential downside of 1.15%. As a group, “Homebuilding” companies have a potential downside of 4.58%. Given Taylor Morrison Home’s higher probable upside, equities research analysts clearly believe Taylor Morrison Home is more favorable than its rivals.

Valuation and Earnings

This table compares Taylor Morrison Home and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Taylor Morrison Home $3.55 billion $52.61 million 13.20
Taylor Morrison Home Competitors $3.89 billion $246.46 million 506.84

Taylor Morrison Home’s rivals have higher revenue and earnings than Taylor Morrison Home. Taylor Morrison Home 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.

Profitability

This table compares Taylor Morrison Home and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taylor Morrison Home 2.41% 4.18% 2.21%
Taylor Morrison Home Competitors 9.60% 14.46% 7.81%

Summary

Taylor Morrison Home rivals beat Taylor Morrison Home on 12 of the 13 factors compared.

About Taylor Morrison Home

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.

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