Whirlpool (NYSE:WHR) and Dream Finders Homes (NYSE:DFH) Critical Contrast

Dream Finders Homes (NYSE:DFH) and Whirlpool (NYSE:WHR) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk and Volatility

Dream Finders Homes has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Whirlpool has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Dream Finders Homes and Whirlpool, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dream Finders Homes	2	3	0	1	2.00
Whirlpool	5	8	0	0	1.62

Whirlpool has a consensus target price of $32.22, indicating a potential upside of 5.58%. Given Whirlpool’s higher possible upside, analysts clearly believe Whirlpool is more favorable than Dream Finders Homes.

Valuation and Earnings

This table compares Dream Finders Homes and Whirlpool”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dream Finders Homes	$4.16 billion	0.27	$217.20 million	$0.96	12.92
Whirlpool	$15.52 billion	0.13	$318.00 million	($2.17)	-14.06

Whirlpool has higher revenue and earnings than Dream Finders Homes. Whirlpool 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 Dream Finders Homes and Whirlpool’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dream Finders Homes	2.56%	8.87%	3.20%
Whirlpool	-0.93%	0.47%	0.10%

Insider & Institutional Ownership

95.6% of Dream Finders Homes shares are owned by institutional investors. Comparatively, 90.8% of Whirlpool shares are owned by institutional investors. 66.0% of Dream Finders Homes shares are owned by company insiders. Comparatively, 2.0% of Whirlpool shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Dream Finders Homes beats Whirlpool on 10 of the 14 factors compared between the two stocks.

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.

About Whirlpool

Whirlpool Corporation manufactures and markets home appliances and related products and services in the North America, Europe, the Middle East, Africa, Latin America, and Asia. The company's principal products include refrigerators, freezers, ice makers, and refrigerator water filters; laundry appliances, and commercial laundry products and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers. It markets and distributes its products primarily under the Whirlpool, Maytag, KitchenAid, JennAir, Consul, Brastemp, Amana, Bauknecht, Hotpoint, Indesit, InSinkErator, Yummly, Affresh, Gladiator, Swash, everydrop, Ignis, Privileg, Eslabon de Lujo, and Acros brands. The company sells its products to retailers, distributors, dealers, builders, and other manufacturers, as well as directly to consumers. Whirlpool Corporation was founded in 1911 and is headquartered in Benton Harbor, Michigan.