Reviewing Forestar Group (NYSE:FOR) and Safe and Green Development (NASDAQ:SGD)

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

Profitability

This table compares Safe and Green Development and Forestar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safe and Green Development	N/A	N/A	N/A
Forestar Group	12.99%	14.59%	8.11%

Institutional & Insider Ownership

2.6% of Safe and Green Development shares are held by institutional investors. Comparatively, 35.5% of Forestar Group shares are held by institutional investors. 10.1% of Safe and Green Development shares are held by company insiders. Comparatively, 0.5% of Forestar Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Safe and Green Development and Forestar Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safe and Green Development	0	0	0	0	N/A
Forestar Group	0	1	2	0	2.67

Forestar Group has a consensus target price of $37.17, indicating a potential upside of 16.18%. Given Forestar Group’s higher probable upside, analysts plainly believe Forestar Group is more favorable than Safe and Green Development.

Valuation & Earnings

This table compares Safe and Green Development and Forestar Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safe and Green Development	N/A	N/A	-$4.20 million	N/A	N/A
Forestar Group	$1.56 billion	1.04	$166.90 million	$4.02	7.96

Forestar Group has higher revenue and earnings than Safe and Green Development.

Summary

Forestar Group beats Safe and Green Development on 8 of the 9 factors compared between the two stocks.

About Safe and Green Development

Safe and Green Development Corporation operates as a real estate development company. It focuses on building single or multifamily projects. The company was formerly known as SGB Development Corp. and changed its name to Safe and Green Development Corporation in December 2022. The company was incorporated in 2021 and is based in Miami, Florida. Safe and Green Development Corporation is a subsidiary of Safe & Green Holdings Corp.

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.