Financial Survey: United Homes Group (UHG) vs. The Competition

United Homes Group (NASDAQ:UHG) is one of 23 publicly-traded companies in the “Operative builders” industry, but how does it contrast to its peers? We will compare United Homes Group to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for United Homes Group and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Homes Group	0	0	0	0	N/A
United Homes Group Competitors	349	1714	1578	44	2.36

As a group, “Operative builders” companies have a potential downside of 10.79%. Given United Homes Group’s peers higher probable upside, analysts clearly believe United Homes Group has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares United Homes Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
United Homes Group	$421.47 million	$125.06 million	-32.05
United Homes Group Competitors	$5.93 billion	$733.15 million	7.71

United Homes Group’s peers have higher revenue and earnings than United Homes Group. United Homes Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares United Homes Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Homes Group	29.67%	-76.74%	33.69%
United Homes Group Competitors	11.10%	15.39%	11.64%

Insider & Institutional Ownership

88.9% of United Homes Group shares are held by institutional investors. Comparatively, 88.9% of shares of all “Operative builders” companies are held by institutional investors. 85.3% of United Homes Group shares are held by company insiders. Comparatively, 20.7% of shares of all “Operative builders” companies are held by company 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

United Homes Group has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, United Homes Group’s peers have a beta of 2.64, indicating that their average stock price is 164% more volatile than the S&P 500.

Summary

United Homes Group peers beat United Homes Group on 7 of the 10 factors compared.

About United Homes Group

UHG is a publicly traded residential builder headquartered in Columbia, SC. The company focuses on southeastern markets with 63 current active communities in South Carolina, North Carolina and Georgia. UHG employs a land-light operating strategy with a focus on the design, construction and sale of entry-level, first move up and second move up single-family houses. UHG currently designs, builds and sells detached single-family homes, and, to a lesser extent, attached single-family homes, including duplex homes and town homes in three major market regions in South Carolina: Midlands, Upstate, and Coastal, and also has a presence in Georgia and North Carolina. UHG seeks to operate its homebuilding business in high-growth markets, with substantial in-migrations and employment growth. Under its land-light lot operating strategy, UHG controls its supply of finished building lots through lot purchase agreements with third parties including its Land Development Affiliates, which provide UHG with the right to purchase finished lots after they have been developed by the applicable third party. This land-light operating strategy provides UHG with the ability to amass a pipeline of lots without the same risks associated with acquiring and developing raw land. As UHG reviews potential geographic markets into which it could expand its homebuilding business, either organically or through strategic acquisitions, it intends to focus on selecting markets with positive population and employment growth trends, favorable migration patterns, attractive housing affordability, low state and local income taxes, and desirable lifestyle and weather characteristics.