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

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

Risk and Volatility

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

Profitability

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

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

Insider and Institutional Ownership

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dream Finders Homes	$4.45 billion	0.58	$335.34 million	$3.09	9.02
Green Brick Partners	$2.14 billion	1.42	$284.63 million	$7.81	8.94

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.

Analyst Ratings

This is a summary of current recommendations and price targets for Dream Finders Homes and Green Brick Partners, as provided by MarketBeat.

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

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

Summary

Green Brick Partners beats Dream Finders Homes on 7 of the 12 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 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.