Ryland Group (NYSE: RYL) and PulteGroup (NYSE:PHM) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitabiliy.
Valuation and Earnings
This table compares Ryland Group and PulteGroup’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PulteGroup||$8.09 billion||0.94||$1.11 billion||$1.80||14.06|
PulteGroup has higher revenue and earnings than Ryland Group.
This table compares Ryland Group and PulteGroup’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PulteGroup pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Ryland Group does not pay a dividend. PulteGroup pays out 20.0% of its earnings in the form of a dividend. Ryland Group has raised its dividend for 3 consecutive years.
Insider and Institutional Ownership
92.5% of PulteGroup shares are owned by institutional investors. 0.7% of PulteGroup shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Ryland Group and PulteGroup, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PulteGroup has a consensus price target of $24.91, suggesting a potential downside of 1.58%. Given PulteGroup’s higher probable upside, analysts plainly believe PulteGroup is more favorable than Ryland Group.
PulteGroup beats Ryland Group on 9 of the 12 factors compared between the two stocks.
About Ryland Group
The Ryland Group, Inc. is a homebuilder and a mortgage-finance company. RMC Mortgage Corporation and its subsidiaries (RMCMC) and Ryland Mortgage Company provides mortgage financing and related services for more than 255,000 homebuyers. The Company consists of six reportable segments: four geographically determined homebuilding regions; financial services, and corporate. The Company’s business is conducted and located in the United States, and its operations span all aspects of the homebuying process from design, construction and sale to mortgage origination, title and escrow services. The Company generally builds homes for entry-level buyers and first and second-time move-up buyers. The financial services segment provides mortgage-related products and services, as well as title and escrow services, to its homebuyers. Corporate is a non-operating business segment, which is engaged in supporting operations.
PulteGroup, Inc. is a homebuilder in the United States. The Company’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Its Financial Services operations consist principally of mortgage banking and title operations. The Company conducts its financial services business, through Pulte Mortgage LLC (Pulte Mortgage) and other subsidiaries. Pulte Mortgage arranges financing through the origination of mortgage loans. The Company’s subsidiaries are engaged in the homebuilding business. It offers a product line to meet the needs of homebuyers in its focused markets. Through its brands, which include Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the Company offers a range of home designs, including single-family detached, townhouses, condominiums and duplexes.
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