Comparing Forestar Group (FOR) & Its Rivals

Forestar Group (NYSE: FOR) is one of 67 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it compare to its rivals? We will compare Forestar Group to similar companies based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Forestar Group and its rivals’ 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 -3.69% -2.62% 1.14%

Earnings and Valuation

This table compares Forestar Group and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Forestar Group $197.31 million $58.64 million 12.32
Forestar Group Competitors $419.19 million $31.78 million 1,184.58

Forestar Group’s rivals have higher revenue, but lower earnings than Forestar Group. Forestar Group 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.

Insider & Institutional Ownership

79.7% of Forestar Group shares are held by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are held by institutional investors. 3.1% of Forestar Group shares are held by company insiders. Comparatively, 41.1% of shares of all “Real Estate Development & Operations” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Forestar Group has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500. Comparatively, Forestar Group’s rivals have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Forestar Group and its rivals, 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 153 369 815 9 2.51

As a group, “Real Estate Development & Operations” companies have a potential upside of 32.54%. Given Forestar Group’s rivals higher possible upside, analysts plainly believe Forestar Group has less favorable growth aspects than its rivals.

Summary

Forestar Group beats its rivals 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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