Century Communities (NYSE:CCS) & Gafisa (OTCMKTS:GFASY) Critical Contrast

Century Communities (NYSE:CCS) and Gafisa (OTCMKTS:GFASY) are both small-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Century Communities and Gafisa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Communities	0	5	0	1	2.33
Gafisa	0	0	0	0	0.00

Century Communities currently has a consensus target price of $85.00, indicating a potential upside of 34.34%. Given Century Communities’ stronger consensus rating and higher possible upside, equities analysts clearly believe Century Communities is more favorable than Gafisa.

Institutional and Insider Ownership

99.5% of Century Communities shares are owned by institutional investors. 11.9% of Century Communities shares are owned by company insiders. Comparatively, 3.1% of Gafisa shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Century Communities has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Gafisa has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Valuation and Earnings

This table compares Century Communities and Gafisa”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Communities	$4.40 billion	0.43	$333.82 million	$6.85	9.24
Gafisa	N/A	N/A	N/A	N/A	N/A

Century Communities has higher revenue and earnings than Gafisa.

Profitability

This table compares Century Communities and Gafisa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Century Communities	5.16%	9.36%	5.27%
Gafisa	N/A	N/A	N/A

Summary

Century Communities beats Gafisa on 10 of the 10 factors compared between the two stocks.

About Century Communities

Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its homebuyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 18 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.

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.