PulteGroup (NYSE:PHM) and GoPro (NASDAQ:GPRO) Head to Head Comparison

PulteGroup (NYSE:PHM) and GoPro (NASDAQ:GPRO) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Earnings and Valuation

This table compares PulteGroup and GoPro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PulteGroup	$16.41 billion	1.30	$2.22 billion	$9.79	11.65
GoPro	$568.59 million	0.35	-$93.49 million	($0.99)	-1.10

PulteGroup has higher revenue and earnings than GoPro. GoPro is trading at a lower price-to-earnings ratio than PulteGroup, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PulteGroup and GoPro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PulteGroup	11.62%	15.21%	10.89%
GoPro	-28.52%	-411.41%	-28.86%

Institutional & Insider Ownership

89.9% of PulteGroup shares are held by institutional investors. Comparatively, 70.1% of GoPro shares are held by institutional investors. 0.7% of PulteGroup shares are held by company insiders. Comparatively, 18.1% of GoPro shares are held 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.

Risk and Volatility

PulteGroup has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, GoPro has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for PulteGroup and GoPro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PulteGroup	0	9	11	1	2.62
GoPro	1	1	0	0	1.50

PulteGroup presently has a consensus target price of $137.29, suggesting a potential upside of 20.36%. Given PulteGroup’s stronger consensus rating and higher probable upside, analysts clearly believe PulteGroup is more favorable than GoPro.

Summary

PulteGroup beats GoPro on 13 of the 15 factors compared between the two stocks.

About PulteGroup

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names. In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

About GoPro

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, magnetic swivel clips, chest harnesses, and head straps; media, display, and light mods; spare batteries, dive filters, and charging accessories and cables; and lifestyle gear, such as bags, backpacks, cases, t-shirts, hats, and other soft goods. In addition, the company provides mobile, desktop, and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. sells its products through retailers and wholesale distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.