Cyrela Brazil Realty (OTCMKTS:CYRBY) & Forestar Group (NYSE:FOR) Head-To-Head Contrast

Forestar Group (NYSE:FOR) and Cyrela Brazil Realty (OTCMKTS:CYRBY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

Forestar Group has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Cyrela Brazil Realty has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Insider and Institutional Ownership

35.5% of Forestar Group shares are owned by institutional investors. 0.5% of Forestar Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Forestar Group and Cyrela Brazil Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forestar Group	9.90%	9.76%	5.39%
Cyrela Brazil Realty	21.07%	17.20%	7.84%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Forestar Group and Cyrela Brazil Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forestar Group	0	2	4	1	2.86
Cyrela Brazil Realty	0	0	0	0	0.00

Forestar Group currently has a consensus target price of $32.40, suggesting a potential upside of 6.57%. Given Forestar Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Forestar Group is more favorable than Cyrela Brazil Realty.

Earnings & Valuation

This table compares Forestar Group and Cyrela Brazil Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forestar Group	$1.66 billion	0.93	$167.90 million	$3.27	9.30
Cyrela Brazil Realty	$1.48 billion	1.51	$305.72 million	$0.88	6.60

Cyrela Brazil Realty has lower revenue, but higher earnings than Forestar Group. Cyrela Brazil Realty is trading at a lower price-to-earnings ratio than Forestar Group, indicating that it is currently the more affordable of the two stocks.

Summary

Forestar Group beats Cyrela Brazil Realty on 10 of the 15 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 Cyrela Brazil Realty

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.