Green Brick Partners (NASDAQ:GRBK) versus Traeger (NYSE:COOK) Financial Analysis

Green Brick Partners (NASDAQ:GRBK) and Traeger (NYSE:COOK) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Green Brick Partners and Traeger, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Brick Partners	0	2	0	0	2.00
Traeger	1	5	1	0	2.00

Traeger has a consensus price target of $50.50, indicating a potential downside of 2.20%. Given Traeger’s higher possible upside, analysts clearly believe Traeger is more favorable than Green Brick Partners.

Institutional & Insider Ownership

78.2% of Green Brick Partners shares are owned by institutional investors. Comparatively, 46.8% of Traeger shares are owned by institutional investors. 30.3% of Green Brick Partners shares are owned by insiders. Comparatively, 16.2% of Traeger shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Green Brick Partners has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Traeger has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Green Brick Partners	17.70%	25.35%	17.29%
Traeger	-23.23%	-13.76%	-3.59%

Valuation & Earnings

This table compares Green Brick Partners and Traeger”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Brick Partners	$2.03 billion	1.34	$284.63 million	$6.64	9.49
Traeger	$559.52 million	0.26	-$115.18 million	($42.04)	-1.23

Green Brick Partners has higher revenue and earnings than Traeger. Traeger 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.

Summary

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

About Green Brick Partners

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 Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.