LuxUrban Hotels (NASDAQ:LUXH) and Forestar Group (NYSE:FOR) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of current recommendations for Forestar Group and LuxUrban Hotels, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forestar Group	0	1	2	0	2.67
LuxUrban Hotels	0	2	1	0	2.33

Forestar Group presently has a consensus target price of $35.00, indicating a potential upside of 44.60%. LuxUrban Hotels has a consensus target price of $280.00, indicating a potential upside of 155,455.56%. Given LuxUrban Hotels’ higher probable upside, analysts plainly believe LuxUrban Hotels is more favorable than Forestar Group.

Insider & Institutional Ownership

35.5% of Forestar Group shares are owned by institutional investors. Comparatively, 28.5% of LuxUrban Hotels shares are owned by institutional investors. 0.4% of Forestar Group shares are owned by company insiders. Comparatively, 7.0% of LuxUrban Hotels shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Forestar Group	12.50%	11.91%	6.72%
LuxUrban Hotels	-145.57%	N/A	-29.89%

Valuation & Earnings

This table compares Forestar Group and LuxUrban Hotels”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	$1.51 billion	0.81	$203.40 million	$3.57	6.78
LuxUrban Hotels	$72.79 million	0.01	-$78.52 million	($148.49)	0.00

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

Risk and Volatility

Forestar Group has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, LuxUrban Hotels has a beta of -1.38, indicating that its share price is 238% less volatile than the S&P 500.

Summary

Forestar Group beats LuxUrban Hotels on 12 of the 14 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 LuxUrban Hotels

LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. The company was incorporated in 2017 and is headquartered in Miami, Florida.