Redfin Corporation (NASDAQ: RDFN) and Gafisa SA (NYSE:GFA) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Analyst Recommendations

This is a summary of recent ratings and price targets for Redfin Corporation and Gafisa SA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Redfin Corporation 0 5 2 0 2.29
Gafisa SA 1 0 0 0 1.00

Redfin Corporation currently has a consensus price target of $26.86, indicating a potential upside of 3.18%. Given Redfin Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Redfin Corporation is more favorable than Gafisa SA.

Profitability

This table compares Redfin Corporation and Gafisa SA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Redfin Corporation N/A N/A N/A
Gafisa SA -120.24% -25.46% -9.69%

Earnings and Valuation

This table compares Redfin Corporation and Gafisa SA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Redfin Corporation N/A N/A N/A N/A N/A
Gafisa SA $256.26 million 0.49 -$79.28 million ($28.71) -0.32

Redfin Corporation has higher revenue, but lower earnings than Gafisa SA.

Insider & Institutional Ownership

3.9% of Gafisa SA shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Redfin Corporation beats Gafisa SA on 6 of the 8 factors compared between the two stocks.

About Redfin Corporation

Redfin Corporation is engaged in providing residential real estate brokerage services. The customer can search for homes by neighborhood, city or MLS number, or can refine results using detailed parameters, such as price and number of beds or baths. The Company serves home buyers and sellers. The Company offers online tools to consumers, including Redfin Estimate, which is an automated home-valuation tool. The customer can search homes for sale in Austin, Atlanta, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Fort Lauderdale, Houston, Lake Tahoe, Las Vegas, Los Angeles, Miami, Philadelphia, Phoenix, Portland, OR, Raleigh, San Antonio, San Diego, San Francisco, Sacramento, San Jose, Seattle and Washington. The Company serves over 80 metro areas across the United States.

About Gafisa SA

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 Redfin Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Redfin Corporation and related companies with Analyst Ratings Network's FREE daily email newsletter.