Brookfield Residential Properties (NYSE: BRP) and Green Brick Partners (NASDAQ:GRBK) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Valuation & Earnings

This table compares Brookfield Residential Properties and Green Brick Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brookfield Residential Properties N/A N/A N/A N/A N/A
Green Brick Partners $415.72 million 1.05 $55.33 million $0.58 15.35

Green Brick Partners has higher revenue and earnings than Brookfield Residential Properties.

Profitability

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

Net Margins Return on Equity Return on Assets
Brookfield Residential Properties 12.74% 18.70% 8.12%
Green Brick Partners 6.69% 11.30% 8.33%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Brookfield Residential Properties and Green Brick Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Residential Properties 0 0 2 0 3.00
Green Brick Partners 0 0 0 0 N/A

Brookfield Residential Properties presently has a consensus price target of $28.50, suggesting a potential upside of 18.75%. Given Brookfield Residential Properties’ higher possible upside, equities research analysts clearly believe Brookfield Residential Properties is more favorable than Green Brick Partners.

Institutional & Insider Ownership

82.7% of Green Brick Partners shares are held by institutional investors. 53.1% of Green Brick Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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.

Green Brick Partners Company Profile

Green Brick Partners, Inc. operates in the real estate industry. The Company operates through two segments. The builder operations segment includes its controlled builders results, which include building and selling single-family detached homes and townhomes that are designed and built to meet local customer preferences, and the sale of lots. Builder operations consist of three operating segments: Texas, Georgia, and corporate and other. Corporate operations segment develops and implements strategic initiatives and supports its builder operations and land development by centralizing certain administrative functions, such as finance, treasury, information technology and human resources. The land development segment includes operations related to the acquisition and development of land, which is sold to its controlled builders and third-party homebuilders. As of December 31, 2016, it had owned or controlled over 5,200 home sites in various locations in the Dallas and Atlanta markets.

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