St. Joe Company (The) (NYSE: JOE) and Forestar Group (NYSE:FOR) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Volatility and Risk
St. Joe Company (The) has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Forestar Group has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.
Insider & Institutional Ownership
96.8% of St. Joe Company (The) shares are owned by institutional investors. Comparatively, 85.1% of Forestar Group shares are owned by institutional investors. 32.8% of St. Joe Company (The) shares are owned by insiders. Comparatively, 3.1% of Forestar Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for St. Joe Company (The) and Forestar Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|St. Joe Company (The)||0||0||0||0||N/A|
This table compares St. Joe Company (The) and Forestar Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|St. Joe Company (The)||23.02%||3.08%||2.04%|
Valuation and Earnings
This table compares St. Joe Company (The) and Forestar Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|St. Joe Company (The)||$89.52 million||14.24||$8.60 million||$0.29||62.42|
|Forestar Group||$162.02 million||4.48||$34.63 million||$2.08||8.32|
Forestar Group has higher revenue and earnings than St. Joe Company (The). Forestar Group is trading at a lower price-to-earnings ratio than St. Joe Company (The), indicating that it is currently the more affordable of the two stocks.
Forestar Group beats St. Joe Company (The) on 7 of the 11 factors compared between the two stocks.
St. Joe Company (The) Company Profile
The St. Joe Company is a real estate development, asset management and operating company. The Company operates through five segments: residential real estate; commercial real estate; resorts and leisure; leasing operations, and forestry. Its residential real estate segment plans and develops primary residential and resort residential communities of various sizes on its existing land. Its commercial real estate segment plans, develops, manages and sells real estate. Resorts and leisure segment features a portfolio of vacation rentals and hotel operations, as well as golf courses, a beach club, marinas and other related resort amenities. Its leasing operations business includes its retail and commercial leasing. Its forestry segment focuses on the management of its timber holdings in Northwest Florida.
Forestar Group Company Profile
Forestar Group Inc. is a residential and mixed-use real estate development company. The Company operates through three segments. The Real Estate segment secures entitlements and develops infrastructure on its lands, for single-family residential and mixed-use communities. The Mineral resources segment is focused on its owned oil and gas mineral interests through promoting exploration, development and production activities. The Other segment manages its timber holdings, recreational leases and water resource initiatives. As of December 31, 2016, its core community development business had directly or through ventures interests in 50 residential and mixed-use projects consisting of 4,600 acres of real estate located in 10 states and 14 markets. As of December 31, 2016, its non-core assets included approximately 523,000 net acres of owned mineral assets, 19,000 acres of timberland and undeveloped land, four multifamily assets and approximately 20,000 acres of groundwater leases.
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