Sleep Number (NASDAQ:SNBR) and Green Brick Partners (NASDAQ:GRBK) Critical Comparison

by · The Markets Daily

Green Brick Partners (NASDAQ:GRBK – Get Free Report) and Sleep Number (NASDAQ:SNBR – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Profitability

This table compares Green Brick Partners and Sleep Number’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Green Brick Partners17.70%25.35%17.29%
Sleep Number-12.98%N/A-16.48%

Analyst Recommendations

This is a summary of recent ratings and target prices for Green Brick Partners and Sleep Number, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Green Brick Partners02002.00
Sleep Number22001.50

Sleep Number has a consensus target price of $3.50, suggesting a potential upside of 2,700.00%. Given Sleep Number’s higher probable upside, analysts plainly believe Sleep Number is more favorable than Green Brick Partners.

Valuation and Earnings

This table compares Green Brick Partners and Sleep Number”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Green Brick Partners$2.03 billion1.36$284.63 million$6.649.66
Sleep Number$1.34 billion0.00-$131.96 million($7.56)-0.02

Green Brick Partners has higher revenue and earnings than Sleep Number. Sleep Number is trading at a lower price-to-earnings ratio than Green Brick Partners, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Green Brick Partners has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Sleep Number has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500.

Institutional and Insider Ownership

78.2% of Green Brick Partners shares are owned by institutional investors. Comparatively, 85.7% of Sleep Number shares are owned by institutional investors. 30.3% of Green Brick Partners shares are owned by company insiders. Comparatively, 3.6% of Sleep Number shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Green Brick Partners beats Sleep Number on 10 of the 13 factors compared between the two stocks.

About Green Brick Partners

(Get Free Report)

Green Brick Partners, Inc. is a diversified homebuilding and land development company in the United States. The company operates through three segments: Builder operations Central, Builder operations Southeast, and Land Development. The Builder operations Central segment operates builders in Texas; and the closing and delivery of homes. The Builder operations Southeast operates builders in Georgia and Florida. The Land Development segment acquires land for the development of residential lots that are transferred to our controlled builders or sold to third party homebuilders. It also provides financial services platform, including mortgage and title services. In addition, the company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master-planned communities. Green Brick Partners, Inc. was incorporated in 2006 and is based in Plano, Texas.

About Sleep Number

(Get Free Report)

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.