CaliberCos (NASDAQ:CWD) and Forestar Group (NYSE:FOR) Critical Survey

Forestar Group (NYSE:FOR) and CaliberCos (NASDAQ:CWD) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Earnings & Valuation

This table compares Forestar Group and CaliberCos’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forestar Group	$1.44 billion	1.12	$166.90 million	$4.02	7.93
CaliberCos	$90.94 million	0.21	-$12.70 million	($0.74)	-1.18

Forestar Group has higher revenue and earnings than CaliberCos. CaliberCos is trading at a lower price-to-earnings ratio than Forestar Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Forestar Group and CaliberCos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forestar Group	12.99%	14.59%	8.11%
CaliberCos	-18.14%	-19.75%	-5.30%

Analyst Ratings

This is a breakdown of current recommendations for Forestar Group and CaliberCos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forestar Group	0	1	2	0	2.67
CaliberCos	0	0	0	0	N/A

Forestar Group presently has a consensus target price of $37.17, indicating a potential upside of 16.62%. Given Forestar Group’s higher probable upside, equities research analysts plainly believe Forestar Group is more favorable than CaliberCos.

Insider & Institutional Ownership

35.5% of Forestar Group shares are held by institutional investors. Comparatively, 4.1% of CaliberCos shares are held by institutional investors. 0.5% of Forestar Group shares are held by insiders. Comparatively, 42.3% of CaliberCos shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Forestar Group beats CaliberCos on 11 of the 12 factors compared between the two stocks.

About Forestar Group

Forestar Group Inc. operates as a residential lot development company in the United States. The company acquires land and develops infrastructure for single-family residential communities. It sells its residential single-family finished lots to local, regional, and national homebuilders. The company was incorporated in 2005 and is headquartered in Arlington, Texas. Forestar Group Inc. operates as a subsidiary of D.R. Horton, Inc.

About CaliberCos

Caliber (NASDAQ: CWD) is a vertically integrated alternative asset management firm whose purpose is to build generational wealth for investors seeking to access opportunities in middle-market assets. Caliber differentiates itself by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments which are managed by our in-house asset services group. Our funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. Additional information can be found at Caliberco.com and CaliberFunds.co.