Reviewing Dream Finders Homes (DFH) and Its Competitors

Dream Finders Homes (NASDAQ:DFH – Get Rating) is one of 21 public companies in the “Operative builders” industry, but how does it compare to its rivals? We will compare Dream Finders Homes to related businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.

Valuation & Earnings

This table compares Dream Finders Homes and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dream Finders Homes	$1.92 billion	$121.13 million	13.81
Dream Finders Homes Competitors	$5.49 billion	$684.36 million	7.29

Dream Finders Homes’ rivals have higher revenue and earnings than Dream Finders Homes. Dream Finders Homes is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dream Finders Homes	6.30%	35.56%	9.84%
Dream Finders Homes Competitors	11.33%	150.74%	11.94%

Analyst Recommendations

This is a summary of recent ratings for Dream Finders Homes and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dream Finders Homes	0	3	0	0	2.00
Dream Finders Homes Competitors	387	1516	1375	89	2.35

Dream Finders Homes presently has a consensus price target of $18.00, indicating a potential upside of 5.14%. As a group, “Operative builders” companies have a potential upside of 24.37%. Given Dream Finders Homes’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Dream Finders Homes has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

18.5% of Dream Finders Homes shares are owned by institutional investors. Comparatively, 75.6% of shares of all “Operative builders” companies are owned by institutional investors. 75.9% of Dream Finders Homes shares are owned by company insiders. Comparatively, 18.1% of shares of all “Operative builders” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Dream Finders Homes has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Dream Finders Homes’ rivals have a beta of 2.32, meaning that their average stock price is 132% more volatile than the S&P 500.

Summary

Dream Finders Homes rivals beat Dream Finders Homes on 11 of the 13 factors compared.

Dream Finders Homes Company Profile (Get Rating)

Dream Finders Homes, Inc. operates as a holding company for Dream Finders Holdings LLC that engages in homebuilding business in the United States. It designs, constructs, and sells single-family entry-level, and first-time and second time move-up homes in Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin, Dallas, and Houston. The company also operates as a licensed home mortgage broker that underwrites, originates, and sells mortgages to Prime Lending; and provides insurance agency services, including closing, escrow, and title insurance, as well as mortgage banking solutions. It sells its homes through its sales representatives and independent real estate brokers. The company was founded in 2008 and is headquartered in Jacksonville, Florida.