Head to Head Comparison: M/I Homes (NYSE:MHO) versus Gafisa (OTCMKTS:GFASY)

Gafisa (OTCMKTS:GFASY) and M/I Homes (NYSE:MHO) are both construction 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 Gafisa and M/I Homes”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gafisa	N/A	N/A	N/A	N/A	N/A
M/I Homes	$4.48 billion	0.76	$563.72 million	$17.03	7.62

M/I Homes has higher revenue and earnings than Gafisa.

Profitability

This table compares Gafisa and M/I Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gafisa	N/A	N/A	N/A
M/I Homes	10.56%	15.72%	10.26%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Gafisa and M/I Homes, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gafisa	0	0	0	0	0.00
M/I Homes	0	2	1	2	3.00

M/I Homes has a consensus price target of $155.00, suggesting a potential upside of 19.38%. Given M/I Homes’ stronger consensus rating and higher possible upside, analysts clearly believe M/I Homes is more favorable than Gafisa.

Institutional & Insider Ownership

95.1% of M/I Homes shares are held by institutional investors. 3.1% of Gafisa shares are held by company insiders. Comparatively, 3.5% of M/I Homes 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.

Volatility & Risk

Gafisa has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, M/I Homes has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Summary

M/I Homes beats Gafisa on 11 of the 11 factors compared between the two stocks.

About Gafisa

Gafisa S.A. operates as a development and construction company under the Gafisa brand name in Brazil. The company is involved in residential, commercial, and hotel projects. It also provides technical consultancy services, and real estate management and construction services to third parties. Gafisa S.A. was founded in 1954 and is headquartered in São Paulo, Brazil.

About M/I Homes

M/I Homes, Inc., together with its subsidiaries, engages in the construction and sale of single-family residential homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. It also designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, multi-generational, and luxury homebuyers under the M/I Homes brand name. In addition, the company purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others. Further, the company originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes. M/I Homes, Inc. was founded in 1976 and is based in Columbus, Ohio.