Forestar Group (NYSE:FOR) versus LuxUrban Hotels (NASDAQ:LUXH) Financial Survey

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

Volatility and Risk

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

Analyst Recommendations

This is a summary of recent recommendations for LuxUrban Hotels and Forestar Group, as provided by MarketBeat.com.

	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 currently has a consensus price target of $280.00, indicating a potential upside of 254,445.45%. Forestar Group has a consensus price target of $33.00, indicating a potential upside of 37.67%. Given LuxUrban Hotels’ higher probable upside, equities research analysts plainly believe LuxUrban Hotels is more favorable than Forestar Group.

Institutional & Insider Ownership

28.5% of LuxUrban Hotels shares are held by institutional investors. Comparatively, 35.5% of Forestar Group shares are held by institutional investors. 7.0% of LuxUrban Hotels shares are held by insiders. Comparatively, 0.4% of Forestar Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares LuxUrban Hotels 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
LuxUrban Hotels	$113.40 million	0.00	-$78.52 million	($148.49)	0.00
Forestar Group	$1.51 billion	0.80	$203.40 million	$3.57	6.71

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	12.50%	11.74%	6.57%

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.