Financial Contrast: Sleep Number (NASDAQ:SNBR) vs. Green Brick Partners (NASDAQ:GRBK)

Sleep Number (NASDAQ:SNBR) and Green Brick Partners (NASDAQ:GRBK) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Risk & Volatility

Sleep Number has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500. Comparatively, Green Brick Partners has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Sleep Number and Green Brick Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sleep Number	2	2	0	0	1.50
Green Brick Partners	0	3	0	0	2.00

Sleep Number currently has a consensus price target of $3.50, suggesting a potential upside of 2,700.00%. Given Sleep Number’s higher probable upside, equities analysts clearly believe Sleep Number is more favorable than Green Brick Partners.

Profitability

This table compares Sleep Number and Green Brick Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sleep Number	-12.98%	N/A	-16.48%
Green Brick Partners	17.70%	25.35%	17.29%

Earnings & Valuation

This table compares Sleep Number and Green Brick Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sleep Number	$1.34 billion	0.00	-$131.96 million	($7.56)	-0.02
Green Brick Partners	$1.98 billion	1.30	$284.63 million	$6.22	9.79

Green Brick Partners has higher revenue and earnings than Sleep Number. Sleep Number is trading at a lower price-to-earnings ratio than Green Brick Partners, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

85.7% of Sleep Number shares are owned by institutional investors. Comparatively, 78.2% of Green Brick Partners shares are owned by institutional investors. 3.6% of Sleep Number shares are owned by insiders. Comparatively, 30.3% of Green Brick Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Green Brick Partners beats Sleep Number on 10 of the 13 factors compared between the two stocks.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

About Green Brick Partners

Green Brick Partners, Inc. is a diversified homebuilding and land development company in the United States. The company operates through three segments: Builder operations Central, Builder operations Southeast, and Land Development. The Builder operations Central segment operates builders in Texas; and the closing and delivery of homes. The Builder operations Southeast operates builders in Georgia and Florida. The Land Development segment acquires land for the development of residential lots that are transferred to our controlled builders or sold to third party homebuilders. It also provides financial services platform, including mortgage and title services. In addition, the company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master-planned communities. Green Brick Partners, Inc. was incorporated in 2006 and is based in Plano, Texas.