Contrasting Forestar Group (NYSE:FOR) & Its Peers

Forestar Group (NYSE: FOR) is one of 66 public companies in the “Real Estate Development & Operations” industry, but how does it weigh in compared to its rivals? We will compare Forestar Group to similar companies based on the strength of its valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Forestar Group 75.41% 6.83% 5.28%
Forestar Group Competitors -4.59% 0.54% 1.50%

Analyst Ratings

This is a summary of current ratings and price targets for Forestar Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forestar Group 0 0 0 0 N/A
Forestar Group Competitors 159 377 794 9 2.49

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

Earnings and Valuation

This table compares Forestar Group and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Forestar Group $197.31 million $58.64 million 11.98
Forestar Group Competitors $457.83 million $35.90 million 1,288.97

Forestar Group’s rivals have higher revenue, but lower earnings than Forestar Group. Forestar Group 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.

Institutional & Insider Ownership

79.7% of Forestar Group shares are held by institutional investors. Comparatively, 37.6% of shares of all “Real Estate Development & Operations” companies are held by institutional investors. 3.1% of Forestar Group shares are held by insiders. Comparatively, 40.8% of shares of all “Real Estate Development & Operations” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Forestar Group has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, Forestar Group’s rivals have a beta of 0.65, meaning that their average stock price is 35% less volatile than the S&P 500.

Summary

Forestar Group beats its rivals on 6 of the 10 factors compared.

About Forestar Group

Forestar Group Inc. is a residential and mixed-use real estate development company. The Company operates through three segments. The Real Estate segment secures entitlements and develops infrastructure on its lands, for single-family residential and mixed-use communities. The Mineral resources segment is focused on its owned oil and gas mineral interests through promoting exploration, development and production activities. The Other segment manages its timber holdings, recreational leases and water resource initiatives. As of December 31, 2016, its core community development business had directly or through ventures interests in 50 residential and mixed-use projects consisting of 4,600 acres of real estate located in 10 states and 14 markets. As of December 31, 2016, its non-core assets included approximately 523,000 net acres of owned mineral assets, 19,000 acres of timberland and undeveloped land, four multifamily assets and approximately 20,000 acres of groundwater leases.

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