Head-To-Head Survey: Gafisa (OTCMKTS:GFASY) & M/I Homes (NYSE:MHO)

M/I Homes (NYSE:MHO) and Gafisa (OTCMKTS:GFASY) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Analyst Recommendations

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

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

M/I Homes currently has a consensus target price of $155.00, indicating a potential upside of 20.22%. Given M/I Homes’ stronger consensus rating and higher possible upside, research analysts clearly believe M/I Homes is more favorable than Gafisa.

Insider and Institutional Ownership

95.1% of M/I Homes shares are held by institutional investors. 3.5% of M/I Homes shares are held by company insiders. Comparatively, 3.1% of Gafisa shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares M/I Homes and Gafisa”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M/I Homes	$4.48 billion	0.75	$563.72 million	$17.03	7.57
Gafisa	N/A	N/A	N/A	N/A	N/A

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

Profitability

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

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

Volatility and Risk

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

Summary

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

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.

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.