Contrasting PulteGroup (NYSE:PHM) & GoPro (NASDAQ:GPRO)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for GoPro and PulteGroup, as reported by MarketBeat.com.

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

PulteGroup has a consensus price target of $136.94, indicating a potential upside of 13.14%. Given PulteGroup’s stronger consensus rating and higher possible upside, analysts plainly believe PulteGroup is more favorable than GoPro.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoPro	$651.54 million	0.29	-$92.64 million	($0.99)	-1.02
PulteGroup	$17.31 billion	1.29	$2.22 billion	$9.36	12.93

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

	Net Margins	Return on Equity	Return on Assets
GoPro	-28.52%	-381.63%	-28.86%
PulteGroup	11.24%	14.29%	10.19%

Risk & Volatility

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

Institutional & Insider Ownership

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

Summary

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

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.

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.