CaliberCos (NASDAQ:CWD) and Forestar Group (NYSE:FOR) Financial Contrast

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

Profitability

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

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

Analyst Ratings

This is a summary of recent recommendations for CaliberCos and Forestar Group, as reported by MarketBeat.com.

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

Forestar Group has a consensus price target of $37.17, suggesting a potential upside of 13.83%. Given Forestar Group’s higher probable upside, analysts plainly believe Forestar Group is more favorable than CaliberCos.

Insider & Institutional Ownership

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

Valuation & Earnings

This table compares CaliberCos and Forestar Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CaliberCos	$90.94 million	0.21	-$12.70 million	($0.74)	-1.19
Forestar Group	$1.44 billion	1.15	$166.90 million	$4.02	8.15

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.

Summary

Forestar Group beats CaliberCos on 10 of the 11 factors compared between the two stocks.

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.

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.