Contrasting Gafisa (GFA) and Its Peers

Gafisa (NYSE: GFA) is one of 65 public companies in the “Real Estate Development & Operations” industry, but how does it weigh in compared to its rivals? We will compare Gafisa to similar companies based on the strength of its analyst recommendations, risk, institutional ownership, dividends, valuation, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Gafisa and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gafisa 2 0 0 0 1.00
Gafisa Competitors 159 377 794 9 2.49

As a group, “Real Estate Development & Operations” companies have a potential upside of 14.17%. Given Gafisa’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Gafisa has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Gafisa and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Gafisa $263.80 million -$333.60 million -0.51
Gafisa Competitors $477.31 million $40.23 million 1,311.99

Gafisa’s rivals have higher revenue and earnings than Gafisa. Gafisa is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Gafisa has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Gafisa’s rivals have a beta of 0.68, meaning that their average stock price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

3.8% of Gafisa shares are held by institutional investors. Comparatively, 37.5% of shares of all “Real Estate Development & Operations” companies are held by institutional investors. 39.5% of shares of all “Real Estate Development & Operations” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Gafisa and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gafisa -195.79% -34.52% -11.97%
Gafisa Competitors -4.56% 0.58% 1.51%

Summary

Gafisa rivals beat Gafisa on 12 of the 13 factors compared.

Gafisa Company Profile

Gafisa S.A. is a diversified national homebuilder. The Company’s segments are Gafisa (for ventures targeted at high and medium income) and Tenda (for ventures targeted at low income). The Company’s brands include Tenda, which serves the affordable entry-level housing segments, Gafisa, which offers a range of residential options to the mid to higher income segments and Alphaville (equity method investment), which focuses on the identification, development and sale of residential communities. In addition, it provides construction services to third parties on certain developments in the Gafisa segment where it retains an equity interest. Its real estate business activities include developments for sale of residential units, land subdivisions and commercial buildings; construction services, and sale of units through its brokerage subsidiaries, Gafisa Vendas Intermediacao Imobiliaria Ltda and Gafisa Vendas in Rio de Janeiro, jointly referred to as Gafisa Vendas.

Receive News & Ratings for Gafisa Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gafisa and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply