D.R. Horton (DHI) and Green Brick Partners (GRBK) Head-To-Head Survey
D.R. Horton (NYSE: DHI) and Green Brick Partners (NASDAQ:GRBK) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.
This table compares D.R. Horton and Green Brick Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Green Brick Partners||7.05%||12.07%||8.95%|
80.9% of D.R. Horton shares are owned by institutional investors. Comparatively, 78.9% of Green Brick Partners shares are owned by institutional investors. 7.2% of D.R. Horton shares are owned by company insiders. Comparatively, 53.5% of Green Brick Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
D.R. Horton has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Green Brick Partners has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.
This is a breakdown of recent ratings for D.R. Horton and Green Brick Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Green Brick Partners||0||0||0||0||N/A|
D.R. Horton presently has a consensus target price of $44.07, indicating a potential downside of 11.87%. Given D.R. Horton’s higher possible upside, analysts clearly believe D.R. Horton is more favorable than Green Brick Partners.
Earnings & Valuation
This table compares D.R. Horton and Green Brick Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|D.R. Horton||$14.09 billion||1.33||$1.04 billion||$2.73||18.32|
|Green Brick Partners||$380.33 million||1.56||$23.75 million||$0.63||18.57|
D.R. Horton has higher revenue and earnings than Green Brick Partners. D.R. Horton is trading at a lower price-to-earnings ratio than Green Brick Partners, indicating that it is currently the more affordable of the two stocks.
D.R. Horton pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. Green Brick Partners does not pay a dividend. D.R. Horton pays out 14.7% of its earnings in the form of a dividend. Green Brick Partners has raised its dividend for 5 consecutive years.
D.R. Horton beats Green Brick Partners on 10 of the 16 factors compared between the two stocks.
About D.R. Horton
D.R. Horton, Inc. is a homebuilding company. The Company constructed and sold homes in 27 states and 79 markets, as of September 30, 2015. The Company’s segments include its 39 homebuilding divisions, its financial services operations and its other business activities. In the homebuilding segment, the Company builds and sells single-family detached homes and attached homes, such as town homes, duplexes, triplexes and condominiums. The Company’s 39 homebuilding divisions are aggregated into six segments: East Region, South Central Region, Midwest Region, West Region, Southwest Region and Southeast Region. In the financial services segment, the Company sells mortgages and collects fees for title insurance agency and closing services. The Company has subsidiaries that conduct insurance-related operations; construct and own income-producing rental properties; own non-residential real estate, including ranch land and improvements, and own and operate oil and gas-related assets.
About Green Brick Partners
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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