Head-To-Head Analysis: Tri Pointe Homes (NYSE:TPH) versus Sekisui House (OTCMKTS:SKHSY)

Tri Pointe Homes (NYSE:TPH) and Sekisui House (OTCMKTS:SKHSY) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Tri Pointe Homes and Sekisui House”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tri Pointe Homes	$4.42 billion	0.66	$458.03 million	$3.93	8.15
Sekisui House	$26.67 billion	0.54	$1.44 billion	$2.03	10.66

Sekisui House has higher revenue and earnings than Tri Pointe Homes. Tri Pointe Homes is trading at a lower price-to-earnings ratio than Sekisui House, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Tri Pointe Homes and Sekisui House, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tri Pointe Homes	0	3	3	1	2.71
Sekisui House	0	1	0	0	2.00

Tri Pointe Homes currently has a consensus price target of $40.80, suggesting a potential upside of 27.34%. Given Tri Pointe Homes’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Tri Pointe Homes is more favorable than Sekisui House.

Volatility & Risk

Tri Pointe Homes has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Sekisui House has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

97.0% of Tri Pointe Homes shares are owned by institutional investors. Comparatively, 0.0% of Sekisui House shares are owned by institutional investors. 2.7% of Tri Pointe Homes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Tri Pointe Homes and Sekisui House’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tri Pointe Homes	9.22%	11.33%	7.75%
Sekisui House	4.78%	9.88%	4.10%

Summary

Tri Pointe Homes beats Sekisui House on 12 of the 15 factors compared between the two stocks.

About Tri Pointe Homes

Tri Pointe Homes, Inc. engages in the design, construction, and sale of single-family attached and detached homes in the United States. The company operates through a portfolio of six regional home building brands comprising Maracay in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California, Colorado, and the Carolinas; and Winchester Homes in Maryland and Northern Virginia. It operates active selling communities, and owned or controlled lots. The company sells its homes through own sales representatives and independent real estate brokers. It provides financial services, such as mortgage financing, title and escrow, and property and casualty insurance agency services. The company was formerly known as TRI Pointe Group, Inc. and changed its name to Tri Pointe Homes, Inc. in January 2021. Tri Pointe Homes, Inc. was founded in 2009 and is based in Incline Village, Nevada.

About Sekisui House

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. The company operates through Custom Detached Houses, Rental Housing, Architectural/Civil Engineering, Remodeling, Real Estate Management Fees, Houses For Sale, Condominiums, Urban Redevelopment, and Overseas segments. It also engages in contracting of design and construction of custom detached houses, rental housing, office building, commercial buildings, and other properties; construction of reinforced concrete rental housing and commercial buildings; contracting of design and construction of civil engineering works; remodeling and renovation of houses; subleasing, management, operation, and brokerage of real estate; sale of houses and residential land; and sales of condominiums. Sekisui House, Ltd. was incorporated in 1929 and is headquartered in Osaka, Japan.