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

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

Profitability

This table compares Forestar Group and Safe and Green Development’s 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%
Safe and Green Development	N/A	N/A	N/A

Institutional & Insider Ownership

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

Valuation & Earnings

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

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

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

Analyst Ratings

This is a breakdown of current ratings for Forestar Group and Safe and Green Development, as reported by MarketBeat.

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

Forestar Group currently has a consensus price target of $37.17, suggesting a potential upside of 16.18%. Given Forestar Group’s higher possible upside, research analysts clearly believe Forestar Group is more favorable 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 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 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.