United Homes Group (UHG) and Its Peers Critical Comparison

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

Insider & Institutional Ownership

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

Analyst Recommendations

This is a summary of recent ratings and price targets for United Homes Group and its competitors, as provided 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 competitors higher probable upside, analysts plainly believe United Homes Group has less favorable growth aspects than its competitors.

Volatility and Risk

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

Earnings & Valuation

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

Profitability

This table compares United Homes Group and its competitors’ 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%

Summary

United Homes Group competitors 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.