Sekisui House (OTCMKTS:SKHSY) versus Beazer Homes USA (NYSE:BZH) Head-To-Head Contrast

Sekisui House (OTCMKTS:SKHSY) and Beazer Homes USA (NYSE:BZH) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Risk & Volatility

Sekisui House has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Beazer Homes USA has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sekisui House and Beazer Homes USA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sekisui House	$26.67 billion	0.55	$1.44 billion	$2.04	10.75
Beazer Homes USA	$2.33 billion	0.30	$140.18 million	$2.20	10.86

Sekisui House has higher revenue and earnings than Beazer Homes USA. Sekisui House 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.

Insider and Institutional Ownership

0.0% of Sekisui House shares are held by institutional investors. Comparatively, 85.7% of Beazer Homes USA shares are held by institutional investors. 6.5% of Beazer Homes USA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sekisui House and Beazer Homes USA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sekisui House	0	1	0	0	2.00
Beazer Homes USA	0	3	2	0	2.40

Beazer Homes USA has a consensus target price of $31.33, indicating a potential upside of 31.21%. Given Beazer Homes USA’s stronger consensus rating and higher probable upside, analysts clearly believe Beazer Homes USA is more favorable than Sekisui House.

Profitability

This table compares Sekisui House and Beazer Homes USA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sekisui House	4.67%	10.07%	4.16%
Beazer Homes USA	2.84%	6.16%	2.86%

Summary

Beazer Homes USA beats Sekisui House on 8 of the 14 factors compared between the two stocks.

About Sekisui House

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. The company operates through Custom Detached Houses, Rental Housing, Architectural/Civil Engineering, Remodeling, Real Estate Management Fees, Houses For Sale, Condominiums, Urban Redevelopment, and Overseas segments. It also engages in contracting of design and construction of custom detached houses, rental housing, office building, commercial buildings, and other properties; construction of reinforced concrete rental housing and commercial buildings; contracting of design and construction of civil engineering works; remodeling and renovation of houses; subleasing, management, operation, and brokerage of real estate; sale of houses and residential land; and sales of condominiums. Sekisui House, Ltd. was incorporated in 1929 and is headquartered in Osaka, Japan.

About Beazer Homes USA

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.