Forestar Group (NYSE:FOR) vs. Nam Tai Property (NYSE:NTP) Critical Review

Forestar Group (NYSE:FOR) and Nam Tai Property (NYSE:NTP) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Volatility and Risk

Forestar Group has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Nam Tai Property has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Forestar Group and Nam Tai Property, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forestar Group 0 0 4 0 3.00
Nam Tai Property 0 0 0 0 N/A

Forestar Group presently has a consensus price target of $22.25, indicating a potential upside of 9.34%. Given Forestar Group’s higher possible upside, analysts clearly believe Forestar Group is more favorable than Nam Tai Property.

Earnings & Valuation

This table compares Forestar Group and Nam Tai Property’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forestar Group $114.32 million 7.47 N/A N/A N/A
Nam Tai Property $490,000.00 698.39 -$13.25 million N/A N/A

Forestar Group has higher revenue and earnings than Nam Tai Property.

Profitability

This table compares Forestar Group and Nam Tai Property’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forestar Group N/A 2.96% 1.90%
Nam Tai Property N/A -4.85% -3.60%

Dividends

Nam Tai Property pays an annual dividend of $0.07 per share and has a dividend yield of 0.8%. Forestar Group does not pay a dividend.

Insider & Institutional Ownership

21.4% of Forestar Group shares are held by institutional investors. Comparatively, 35.8% of Nam Tai Property shares are held by institutional investors. 0.2% of Forestar Group shares are held by company insiders. Comparatively, 37.9% of Nam Tai Property shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Forestar Group beats Nam Tai Property on 6 of the 10 factors compared between the two stocks.

About Forestar Group

Forestar Group Inc. operates as a real estate lot development company. It engages in the acquisition, entitlement, and development of infrastructure for single-family residential communities. Forestar Group Inc. sells residential lots primarily to homebuilders, as well as sells commercial properties. The company is headquartered in Austin, Texas. Forestar Group Inc. operates as a subsidiary of D.R. Horton, Inc.

About Nam Tai Property

Nam Tai Property Inc., through its subsidiaries, operates as a property development company in the People's Republic of China. The company owns and develops technology parks. It focuses on developing two parcels of land into commercial complexes in Gushu and Guangming, Shenzhen, as well as renting commercial complexes. The company was formerly known as Nam Tai Electronics, Inc. and changed its name to Nam Tai Property Inc. in April 2014. Nam Tai Property Inc. was founded in 1975 and is headquartered in Shenzhen, the People's Republic of China.

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