Critical Contrast: Forestar Group (NYSE:FOR) vs. LuxUrban Hotels (NASDAQ:LUXH)

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

Earnings & Valuation

This table compares LuxUrban Hotels and Forestar Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LuxUrban Hotels	$113.40 million	0.01	-$78.52 million	($148.49)	0.00
Forestar Group	$1.51 billion	0.90	$203.40 million	$4.01	6.68

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LuxUrban Hotels	-145.57%	N/A	-29.89%
Forestar Group	13.48%	13.59%	7.64%

Risk & Volatility

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

Institutional & Insider Ownership

28.5% of LuxUrban Hotels shares are owned by institutional investors. Comparatively, 35.5% of Forestar Group shares are owned by institutional investors. 7.0% of LuxUrban Hotels shares are owned by company insiders. Comparatively, 0.4% of Forestar Group shares are owned by company 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.

Analyst Ratings

This is a breakdown of recent ratings for LuxUrban Hotels and Forestar Group, as reported by MarketBeat.

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

LuxUrban Hotels presently has a consensus price target of $280.00, suggesting a potential upside of 99,900.00%. Forestar Group has a consensus price target of $37.33, suggesting a potential upside of 39.32%. Given LuxUrban Hotels’ higher probable upside, equities analysts plainly believe LuxUrban Hotels is more favorable than Forestar Group.

Summary

Forestar Group beats LuxUrban Hotels on 12 of the 14 factors compared between the two stocks.

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.

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.