Taylor Morrison Home Corporation (TMHC) and Beazer Homes USA (BZH) Financial Survey
Taylor Morrison Home Corporation (NYSE: TMHC) and Beazer Homes USA (NYSE:BZH) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
59.3% of Taylor Morrison Home Corporation shares are owned by institutional investors. Comparatively, 84.1% of Beazer Homes USA shares are owned by institutional investors. 2.4% of Taylor Morrison Home Corporation shares are owned by insiders. Comparatively, 7.6% of Beazer Homes USA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Taylor Morrison Home Corporation and Beazer Homes USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taylor Morrison Home Corporation||2.41%||4.18%||2.21%|
|Beazer Homes USA||1.66%||6.29%||1.86%|
Earnings and Valuation
This table compares Taylor Morrison Home Corporation and Beazer Homes USA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Taylor Morrison Home Corporation||$3.55 billion||0.80||$52.61 million||$1.84||12.91|
|Beazer Homes USA||$1.92 billion||0.38||$31.81 million||$0.94||23.30|
Taylor Morrison Home Corporation has higher revenue and earnings than Beazer Homes USA. Taylor Morrison Home Corporation is trading at a lower price-to-earnings ratio than Beazer Homes USA, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Taylor Morrison Home Corporation has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Beazer Homes USA has a beta of 2.73, meaning that its stock price is 173% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Taylor Morrison Home Corporation and Beazer Homes USA, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taylor Morrison Home Corporation||0||4||1||0||2.20|
|Beazer Homes USA||1||3||1||0||2.00|
Taylor Morrison Home Corporation currently has a consensus price target of $23.25, suggesting a potential downside of 2.11%. Beazer Homes USA has a consensus price target of $19.00, suggesting a potential downside of 13.24%. Given Taylor Morrison Home Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe Taylor Morrison Home Corporation is more favorable than Beazer Homes USA.
Taylor Morrison Home Corporation beats Beazer Homes USA on 8 of the 13 factors compared between the two stocks.
About Taylor Morrison Home Corporation
Taylor Morrison Home Corporation is a homebuilder, which designs, builds and sells single-family detached and attached homes. The Company is also a land developer, with a portfolio of lifestyle and master-planned communities. Its segments include East, which includes Atlanta, Charlotte, North Florida, Raleigh, Southwest Florida and Tampa; Central, which includes Austin, Dallas, and Houston (each of the Dallas and Houston markets include both a Taylor Morrison division and a Darling Homes division); West, which includes Bay Area, Chicago, Denver, Phoenix, Sacramento and Southern California, and Mortgage Operations, which includes Taylor Morrison Home Funding, LLC (TMHF) and Inspired Title Services, LLC (Inspired Title). It operates under the Taylor Morrison and Darling Homes brand names. The Company also provides financial services to customers through its mortgage subsidiary, TMHF, and title insurance and closing settlement services through its title company, Inspired Title.
About Beazer Homes USA
Beazer Homes USA, Inc. is a geographically diversified homebuilder. As of September 30, 2016, the Company had operations in 13 states within over three geographic regions in the United States. The Company’s segments include West, East and Southeast. The Company markets and sells its products through its Website, www.beazer.com; mobile site, m.beazer.com; real estate listing sites, online advertising, including search engine marketing and display advertising, social media, video, brochures, direct marketing and out-of-home advertising, including billboards and signage, as well as other activities. It offers lender choice and personalization. The Company’s Choice Plans allows buyers to choose living areas, such as the kitchen and master bathroom. Its West segment includes Arizona, California, Nevada and Texas. Its East segment includes Indiana, Maryland/Delaware, Tennessee and Virginia. Its Southeast segment includes Florida, Georgia, North Carolina and South Carolina.
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