Dream Finders Homes (NYSE:DFH) and Green Brick Partners (NASDAQ:GRBK) Critical Survey

Green Brick Partners (NASDAQ:GRBK) and Dream Finders Homes (NYSE:DFH) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Volatility & Risk

Green Brick Partners has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, Dream Finders Homes has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Green Brick Partners and Dream Finders Homes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Brick Partners	0	3	0	0	2.00
Dream Finders Homes	0	2	0	0	2.00

Green Brick Partners presently has a consensus price target of $66.00, suggesting a potential downside of 5.46%. Given Green Brick Partners’ higher possible upside, research analysts plainly believe Green Brick Partners is more favorable than Dream Finders Homes.

Earnings and Valuation

This table compares Green Brick Partners and Dream Finders Homes”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Brick Partners	$2.14 billion	1.42	$284.63 million	$7.81	8.94
Dream Finders Homes	$4.45 billion	0.58	$335.34 million	$3.09	8.97

Dream Finders Homes has higher revenue and earnings than Green Brick Partners. Green Brick Partners is trading at a lower price-to-earnings ratio than Dream Finders Homes, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Green Brick Partners and Dream Finders Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Brick Partners	17.70%	25.35%	17.29%
Dream Finders Homes	6.61%	24.91%	9.03%

Insider & Institutional Ownership

78.2% of Green Brick Partners shares are owned by institutional investors. Comparatively, 95.6% of Dream Finders Homes shares are owned by institutional investors. 29.7% of Green Brick Partners shares are owned by insiders. Comparatively, 68.2% of Dream Finders Homes shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Green Brick Partners beats Dream Finders Homes on 7 of the 12 factors compared between the two stocks.

About Green Brick Partners

Green Brick Partners, Inc. is a diversified homebuilding and land development company in the United States. The company operates through three segments: Builder operations Central, Builder operations Southeast, and Land Development. The Builder operations Central segment operates builders in Texas; and the closing and delivery of homes. The Builder operations Southeast operates builders in Georgia and Florida. The Land Development segment acquires land for the development of residential lots that are transferred to our controlled builders or sold to third party homebuilders. It also provides financial services platform, including mortgage and title services. In addition, the company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master-planned communities. Green Brick Partners, Inc. was incorporated in 2006 and is based in Plano, Texas.

About Dream Finders Homes

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.