Taylor Morrison Home (NYSE:TMHC – Get Rating) and Second Street Capital (OTCMKTS:CTON – Get Rating) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
95.1% of Taylor Morrison Home shares are owned by institutional investors. 5.2% of Taylor Morrison Home shares are owned by insiders. Comparatively, 71.9% of Second Street Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Get
Taylor Morrison Home alerts:
Analyst Ratings
This is a breakdown of recent recommendations for Taylor Morrison Home and Second Street Capital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Taylor Morrison Home | 0 | 4 | 3 | 0 | 2.43 |
| Second Street Capital | 0 | 0 | 0 | 0 | N/A |
Taylor Morrison Home currently has a consensus price target of $31.14, suggesting a potential upside of 28.96%. Given Taylor Morrison Home's higher possible upside, equities analysts clearly believe Taylor Morrison Home is more favorable than Second Street Capital.
Valuation & Earnings
This table compares Taylor Morrison Home and Second Street Capital's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Taylor Morrison Home | $7.50 billion | 0.37 | $663.03 million | $7.42 | 3.25 |
| Second Street Capital | N/A | N/A | N/A | N/A | N/A |
Taylor Morrison Home has higher revenue and earnings than Second Street Capital.
Profitability
This table compares Taylor Morrison Home and Second Street Capital's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Taylor Morrison Home | 11.27% | 22.19% | 10.36% |
| Second Street Capital | N/A | N/A | N/A |
Volatility & Risk
Taylor Morrison Home has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Second Street Capital has a beta of 21.2, indicating that its stock price is 2,020% more volatile than the S&P 500.
Summary
Taylor Morrison Home beats Second Street Capital on 7 of the 9 factors compared between the two stocks.
About Taylor Morrison Home
(Get Rating)
Taylor Morrison Home Corporation, together with its subsidiaries, operates as a public homebuilder in the United States. The company designs, builds, and sells single and multi-family detached and attached homes; and develops lifestyle and master-planned communities. It also develops and constructs multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand name; and offers title insurance and closing settlement services, as well as financial services. In addition, the company operates under the Taylor Morrison, William Lyon Signature, and Darling Homes brand names in Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. Taylor Morrison Home Corporation was founded in 1936 and is headquartered in Scottsdale, Arizona.
About Second Street Capital
(Get Rating)
Second Street Capital, Inc. operates as a specialty finance company in the United States. It provides asset based lending to small and medium sized businesses, export trading companies, and small and medium sized homebuilders, developers, and investors. The company offers revenue participation asset based and mortgage loans, as well as preferred equity investments and senior secured loans. It also makes and manages investments in qualified real estate related assets as a principal and on behalf of institutional clients. The company was formerly known as Calton, Inc. and changed its name to Second Street Capital, Inc. in November 2011. Second Street Capital, Inc. was founded in 1969 and is headquartered in Fort Lauderdale, Florida.
Receive News & Ratings for Taylor Morrison Home Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Taylor Morrison Home and related companies with MarketBeat.com's FREE daily email newsletter.
