Gafisa (NYSE: GFA) is one of 64 public companies in the “Real Estate Development & Operations” industry, but how does it compare to its competitors? We will compare Gafisa to related businesses based on the strength of its analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Gafisa $263.80 million -$333.60 million -0.50
Gafisa Competitors $438.91 million $33.86 million 907.37

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

Volatility & Risk

Gafisa has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Gafisa’s competitors have a beta of 0.87, meaning that their average stock price is 13% less volatile than the S&P 500.

Profitability

This table compares Gafisa and its competitors’ 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 -8.94% -1.65% 1.20%

Insider and Institutional Ownership

3.8% of Gafisa shares are held by institutional investors. Comparatively, 35.8% of shares of all “Real Estate Development & Operations” companies are held by institutional investors. 41.1% of shares of all “Real Estate Development & Operations” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Gafisa and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gafisa 2 0 0 0 1.00
Gafisa Competitors 39 229 635 9 2.67

As a group, “Real Estate Development & Operations” companies have a potential upside of 16.97%. Given Gafisa’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Gafisa has less favorable growth aspects than its competitors.

Summary

Gafisa competitors 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.

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