Forestar Group (NYSE: FOR) and St. Joe Company (The) (NYSE:JOE) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

Forestar Group has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500. Comparatively, St. Joe Company (The) has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Forestar Group and St. Joe Company (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forestar Group 0 0 0 0 N/A
St. Joe Company (The) 0 0 0 0 N/A

Insider & Institutional Ownership

85.1% of Forestar Group shares are held by institutional investors. Comparatively, 96.8% of St. Joe Company (The) shares are held by institutional investors. 3.1% of Forestar Group shares are held by insiders. Comparatively, 32.8% of St. Joe Company (The) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Forestar Group and St. Joe Company (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Forestar Group $162.02 million 4.48 $34.63 million $2.08 8.32
St. Joe Company (The) $89.52 million 14.44 $8.60 million $0.29 63.28

Forestar Group has higher revenue and earnings than St. Joe Company (The). Forestar Group is trading at a lower price-to-earnings ratio than St. Joe Company (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Forestar Group and St. Joe Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forestar Group 46.94% 8.75% 6.66%
St. Joe Company (The) 23.02% 3.08% 2.04%

Summary

Forestar Group beats St. Joe Company (The) on 7 of the 11 factors compared between the two stocks.

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.

St. Joe Company (The) Company Profile

The St. Joe Company is a real estate development, asset management and operating company. The Company operates through five segments: residential real estate; commercial real estate; resorts and leisure; leasing operations, and forestry. Its residential real estate segment plans and develops primary residential and resort residential communities of various sizes on its existing land. Its commercial real estate segment plans, develops, manages and sells real estate. Resorts and leisure segment features a portfolio of vacation rentals and hotel operations, as well as golf courses, a beach club, marinas and other related resort amenities. Its leasing operations business includes its retail and commercial leasing. Its forestry segment focuses on the management of its timber holdings in Northwest Florida.

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