Century Communities, Inc. (CCS) vs Forestar Group Inc (FOR)

Century Communities, Inc. and Forestar Group Inc are both Real Estate Development companies. Century Communities, Inc. is the larger, with a market value of $1.8B against $1.4B — 1.3× the size. Forestar Group Inc trades at the lower P/E: 7.9× against 13.7×. Forestar Group Inc grew revenue faster over the last twelve months: 11.8% against −8.89%. Forestar Group Inc has the higher net margin (9.87% vs 3.41%) and the higher return on invested capital (6.04% vs 3.98%). Across the 22 metrics below, Forestar Group Inc leads on 19 and Century Communities, Inc. on 3.

Valuation

Metric CCS FOR Real Estate Development median
P/E 13.65 7.94 7.17
P/S 0.46 0.79 1.63
P/B 0.70 0.73 0.70
Price to free cash flow 16.57 4.72 7.76
EV/EBITDA 11.53 7.93 11.00
EV/Sales 0.79 1.02 2.43
Earnings yield 7.33% 12.59% 7.33%
Free cash flow yield 6.03% 21.20% (1.59%)

Profitability

Metric CCS FOR Real Estate Development median
Gross margin 18.98% 21.39% 29.60%
Operating margin 6.29% 12.64% (2.67%)
Net margin 3.41% 9.87% 3.36%
Free cash flow margin 1.52% 16.66% (0.89%)
Return on equity 5.22% 9.63% 0.56%
Return on assets 2.89% 5.37% 1.11%
Return on invested capital 3.98% 6.04% 0.00%

Growth

Metric CCS FOR Real Estate Development median
Revenue growth (TTM) (8.89%) 11.77% 11.77%
EPS growth (last fiscal year) (53.27%) (17.75%) —
Revenue growth, 5-year CAGR 5.43% 12.27% 5.69%
Net income growth, 5-year CAGR (6.46%) 22.53% 0.00%

Health

Metric CCS FOR Real Estate Development median
Debt to equity 0.57 0.43 0.37
Current ratio 0.56 1.44 0.63
Net debt to EBITDA 3.29 1.95 1.81

Dividend

Metric CCS FOR Real Estate Development median
Dividend yield 1.05% — —
Payout ratio 0.09 0.00 0.00

Size

Metric CCS FOR Real Estate Development median
Market cap 1.76b 1.36b 178.40m

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