Reviewing Somnigroup International (NYSE:SGI) & Green Brick Partners (NASDAQ:GRBK)

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

Analyst Recommendations

This is a breakdown of current ratings for Green Brick Partners and Somnigroup International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Brick Partners	0	2	0	0	2.00
Somnigroup International	0	2	8	0	2.80

Somnigroup International has a consensus target price of $95.00, suggesting a potential upside of 51.46%. Given Somnigroup International’s stronger consensus rating and higher probable upside, analysts clearly believe Somnigroup International is more favorable than Green Brick Partners.

Insider & Institutional Ownership

78.2% of Green Brick Partners shares are owned by institutional investors. Comparatively, 99.9% of Somnigroup International shares are owned by institutional investors. 30.3% of Green Brick Partners shares are owned by insiders. Comparatively, 4.0% of Somnigroup International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Green Brick Partners has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Somnigroup International has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Profitability

This table compares Green Brick Partners and Somnigroup International’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%
Somnigroup International	7.00%	19.32%	5.22%

Earnings & Valuation

This table compares Green Brick Partners and Somnigroup International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Brick Partners	$2.03 billion	1.42	$284.63 million	$6.64	10.08
Somnigroup International	$7.48 billion	1.76	$384.10 million	$2.50	25.09

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

Summary

Somnigroup International beats Green Brick Partners on 8 of the 14 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 Somnigroup International

Somnigroup International Inc., together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the Tempur-Pedic, Sealy, Stearns & Foster, Sealy, and Cocoon by Sealy brand names. The company sells its products through approximately company-owned stores, online, and call centers; and third party retailers, including third party distribution, hospitality, and healthcare. It also operates a portfolio of retail brands, including Tempur-Pedic retail stores, Sleep Outfitters, Sleep Solutions Outlet, Dreams, and SOVA; and licenses Sealy, Tempur, and Stearns & Foster brands, as well as technology and trademarks to other manufacturers. The company was formerly known as Tempur Sealy International, Inc. and changed its name to Somnigroup International Inc. in February 2025. Somnigroup International Inc. was founded in 1846 and is based in Lexington, Kentucky.