Financial Review: Dream Finders Homes (DFH) and The Competition

Dream Finders Homes (NASDAQ:DFHGet Rating) is one of 21 publicly-traded companies in the “Operative builders” industry, but how does it contrast to its competitors? We will compare Dream Finders Homes to related companies based on the strength of its analyst recommendations, valuation, earnings, dividends, profitability, institutional ownership and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dream Finders Homes and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dream Finders Homes 0 3 0 0 2.00
Dream Finders Homes Competitors 389 1521 1381 89 2.35

Dream Finders Homes presently has a consensus target price of $18.00, suggesting a potential upside of 4.41%. As a group, “Operative builders” companies have a potential upside of 21.47%. Given Dream Finders Homes’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Dream Finders Homes has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Dream Finders Homes and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Dream Finders Homes $1.92 billion $121.13 million 13.90
Dream Finders Homes Competitors $5.49 billion $684.36 million 7.33

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

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 insiders. Comparatively, 19.0% of shares of all “Operative builders” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

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

Profitability

This table compares Dream Finders Homes and its competitors’ 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%

Summary

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

About Dream Finders Homes (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.

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