Analyzing The New Home (NYSE:NWHM) & Dream Finders Homes (NASDAQ:DFH)

The New Home (NYSE:NWHM) and Dream Finders Homes (NASDAQ:DFH) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Institutional and Insider Ownership

38.0% of The New Home shares are held by institutional investors. Comparatively, 7.0% of Dream Finders Homes shares are held by institutional investors. 28.2% of The New Home shares are held by insiders. Comparatively, 75.9% of Dream Finders Homes shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares The New Home and Dream Finders Homes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The New Home -5.01% 3.45% 1.28%
Dream Finders Homes N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for The New Home and Dream Finders Homes, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The New Home 0 0 0 0 N/A
Dream Finders Homes 1 3 0 0 1.75

Dream Finders Homes has a consensus price target of $20.00, suggesting a potential downside of 17.76%. Given Dream Finders Homes’ higher probable upside, analysts plainly believe Dream Finders Homes is more favorable than The New Home.

Earnings & Valuation

This table compares The New Home and Dream Finders Homes’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The New Home $507.41 million 0.21 -$32.82 million N/A N/A
Dream Finders Homes $1.13 billion 1.98 $79.09 million N/A N/A

Dream Finders Homes has higher revenue and earnings than The New Home.

Summary

Dream Finders Homes beats The New Home on 6 of the 9 factors compared between the two stocks.

The New Home Company Profile

The New Home Company Inc. designs, constructs, and sells single-family detached and attached homes. The company operates through three segments: Arizona Homebuilding, California Homebuilding, and Fee Building. It builds and sells homes in metropolitan areas of California and Arizona, including Southern California, the San Francisco Bay area, metro Sacramento, and the greater Phoenix area; and Denver, Colorado. The company also offers general contracting, construction management and coordination, and escrow coordination services, as well as sales and marketing services to build homes for third-party property owners. The New Home Company Inc. was founded in 2009 and is headquartered in Irvine, California.

Dream Finders Homes Company Profile

Dream Finders Homes, Inc. operates as a holding company for Dream Finders Holdings LLC that engages in homebuilding business in the United States. The company designs, builds, and sells single family attached and detached homes in Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, and Austin, as well as in Charlotte and Raleigh. It 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. The company sells its homes through its sales representatives and independent real estate brokers. Dream Finders Homes, Inc. was founded in 2008 and is headquartered in Jacksonville, Florida.

Receive News & Ratings for The New Home Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The New Home and related companies with MarketBeat.com's FREE daily email newsletter.