Head-To-Head Analysis: United Homes Group (UHG) versus Its Rivals

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

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

88.8% 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations 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	1713	1577	44	2.36

As a group, “Operative builders” companies have a potential downside of 11.58%. Given United Homes Group’s peers higher possible upside, analysts plainly believe United Homes Group has less favorable growth aspects than its peers.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
United Homes Group	$421.47 million	$125.06 million	-30.05
United Homes Group Competitors	$6.21 billion	$763.65 million	8.01

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.

Risk and Volatility

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.