Forestar Group (FOR) & Its Rivals Critical Contrast

Forestar Group (NYSE: FOR) is one of 66 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it weigh in compared to its competitors? We will compare Forestar Group to related businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional & Insider Ownership

79.7% of Forestar Group shares are owned by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 3.1% of Forestar Group shares are owned by company insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are owned 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 & Earnings

This table compares Forestar Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Forestar Group $197.31 million $58.64 million 12.37
Forestar Group Competitors $419.19 million $31.78 million 1,308.25

Forestar Group’s competitors have higher revenue, but lower earnings than Forestar Group. Forestar Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Forestar Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forestar Group 75.41% 6.83% 5.28%
Forestar Group Competitors -7.54% -2.30% 1.14%

Volatility & Risk

Forestar Group has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Forestar Group’s competitors have a beta of 0.63, indicating that their average stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Forestar Group and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forestar Group 0 0 0 0 N/A
Forestar Group Competitors 153 367 817 9 2.51

As a group, “Real Estate Development & Operations” companies have a potential upside of 28.52%. Given Forestar Group’s competitors higher possible upside, analysts clearly believe Forestar Group has less favorable growth aspects than its competitors.

Summary

Forestar Group beats its competitors on 6 of the 10 factors compared.

Forestar Group Company Profile

Forestar Group Inc. is a residential and mixed-use real estate development company. The Company operates through three segments. The Real Estate segment secures entitlements and develops infrastructure on its lands, for single-family residential and mixed-use communities. The Mineral resources segment is focused on its owned oil and gas mineral interests through promoting exploration, development and production activities. The Other segment manages its timber holdings, recreational leases and water resource initiatives. As of December 31, 2016, its core community development business had directly or through ventures interests in 50 residential and mixed-use projects consisting of 4,600 acres of real estate located in 10 states and 14 markets. As of December 31, 2016, its non-core assets included approximately 523,000 net acres of owned mineral assets, 19,000 acres of timberland and undeveloped land, four multifamily assets and approximately 20,000 acres of groundwater leases.

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