Forestar Group (NYSE:FOR – Get Free Report) and IRSA Inversiones Y Representaciones (NYSE:IRS – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Risk and Volatility
Forestar Group has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, IRSA Inversiones Y Representaciones has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Profitability
This table compares Forestar Group and IRSA Inversiones Y Representaciones’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Forestar Group | 11.45% | 10.65% | 5.89% |
| IRSA Inversiones Y Representaciones | 25.95% | 7.91% | 3.94% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forestar Group | 0 | 1 | 3 | 1 | 3.00 |
| IRSA Inversiones Y Representaciones | 0 | 0 | 1 | 0 | 3.00 |
Forestar Group presently has a consensus price target of $30.20, suggesting a potential upside of 36.69%. IRSA Inversiones Y Representaciones has a consensus price target of $13.00, suggesting a potential downside of 10.71%. Given Forestar Group’s higher possible upside, equities research analysts plainly believe Forestar Group is more favorable than IRSA Inversiones Y Representaciones.
Insider and Institutional Ownership
35.5% of Forestar Group shares are held by institutional investors. Comparatively, 45.5% of IRSA Inversiones Y Representaciones shares are held by institutional investors. 0.4% of Forestar Group shares are held by insiders. Comparatively, 25.1% of IRSA Inversiones Y Representaciones shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Forestar Group and IRSA Inversiones Y Representaciones”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Forestar Group | $1.51 billion | 0.74 | $203.40 million | $3.30 | 6.69 |
| IRSA Inversiones Y Representaciones | $658.73 million | 1.67 | -$58.25 million | $1.58 | 9.22 |
Forestar Group has higher revenue and earnings than IRSA Inversiones Y Representaciones. Forestar Group is trading at a lower price-to-earnings ratio than IRSA Inversiones Y Representaciones, indicating that it is currently the more affordable of the two stocks.
Summary
Forestar Group beats IRSA Inversiones Y Representaciones on 8 of the 14 factors compared between the two stocks.
About Forestar Group
Forestar Group Inc. operates as a residential lot development company in the United States. The company acquires land and develops infrastructure for single-family residential communities. It sells its residential single-family finished lots to local, regional, and national homebuilders. The company was incorporated in 2005 and is headquartered in Arlington, Texas. Forestar Group Inc. operates as a subsidiary of D.R. Horton, Inc.
About IRSA Inversiones Y Representaciones
IRSA Inversiones y Representaciones Sociedad Anónima, together with its subsidiaries, engages in the diversified real estate activities in Argentina. It operates through five segments: Shopping Malls, Offices, Hotels, Sales and Developments, and Others. The company is involved in the acquisition, development, and operation of shopping malls, office buildings, and other non-shopping mall properties primarily for rental purposes. It also acquires and operates luxury hotels and resorts under the Intercontinental, Libertador, and Llao Llao names; develops and sells residential properties, including apartment tower complexes; and acquires undeveloped land reserves for future development or sale. In addition, the company engages in the development and operation of stadium; and provision of ¡appa!, a digital customer loyalty system platform, for consumption in shopping malls, use of parking spaces, and redemption of corporate benefits. The company was incorporated in 1943 and is headquartered in Buenos Aires, Argentina. IRSA Inversiones y Representaciones Sociedad Anónima operates as a subsidiary of Cresud S.A.C.I.F. y A.
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