Smith Douglas Homes (NYSE:SDHC) and Dream Finders Homes (NASDAQ:DFH) Financial Survey

Smith Douglas Homes (NYSE:SDHC) and Dream Finders Homes (NASDAQ:DFH) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Earnings and Valuation

This table compares Smith Douglas Homes and Dream Finders Homes’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Douglas Homes	$764.63 million	0.31	$123.18 million	N/A	N/A
Dream Finders Homes	$3.75 billion	0.86	$295.90 million	$2.85	12.20

Dream Finders Homes has higher revenue and earnings than Smith Douglas Homes.

Analyst Ratings

This is a breakdown of current ratings and price targets for Smith Douglas Homes and Dream Finders Homes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Douglas Homes	0	5	1	0	2.17
Dream Finders Homes	0	2	0	0	2.00

Smith Douglas Homes currently has a consensus price target of $27.70, suggesting a potential upside of 3.71%. Dream Finders Homes has a consensus price target of $32.00, suggesting a potential downside of 7.94%. Given Smith Douglas Homes’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Smith Douglas Homes is more favorable than Dream Finders Homes.

Insider and Institutional Ownership

95.6% of Dream Finders Homes shares are held by institutional investors. 74.1% of Dream Finders Homes shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Smith Douglas Homes and Dream Finders Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith Douglas Homes	N/A	N/A	N/A
Dream Finders Homes	7.89%	36.62%	12.40%

Summary

Dream Finders Homes beats Smith Douglas Homes on 8 of the 11 factors compared between the two stocks.

About Smith Douglas Homes

Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.

About Dream Finders Homes

Dream Finders Homes, Inc. operates as a holding company for Dream Finders Homes LLC that engages in homebuilding business in the United States. The company operates through four segments: Southeast, Mid-Atlantic, Midwest, and Financial Services. It designs, constructs, and sells single-family entry-level, and first-time and second time move-up homes, as well as active adult homes and custom homes in Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, and the Washington, D.C. metropolitan area. The company markets its homes under various brands, including Dream Finders Homes, DF Luxury, Craft Homes, and Coventry Homes. It also provides insurance agency services, including closing, escrow, and title insurance, as well as mortgage banking solutions. The company sells its homes through its sales representatives and independent real estate brokers. The company was founded in 2008 and is headquartered in Jacksonville, Florida.