Analyzing Smith Douglas Homes (SDHC) and Its Competitors

Smith Douglas Homes (NYSE:SDHC) is one of 26 publicly-traded companies in the “Operative builders” industry, but how does it weigh in compared to its rivals? We will compare Smith Douglas Homes to similar companies based on the strength of its analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Institutional and Insider Ownership

89.0% of shares of all “Operative builders” companies are owned by institutional investors. 18.7% of shares of all “Operative builders” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Smith Douglas Homes and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Douglas Homes	1	4	0	0	1.80
Smith Douglas Homes Competitors	394	1869	1728	53	2.36

Smith Douglas Homes presently has a consensus target price of $24.80, indicating a potential upside of 22.53%. As a group, “Operative builders” companies have a potential upside of 32.10%. Given Smith Douglas Homes’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Smith Douglas Homes has less favorable growth aspects than its rivals.

Profitability

This table compares Smith Douglas Homes and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith Douglas Homes	4.60%	21.01%	16.10%
Smith Douglas Homes Competitors	9.23%	84.38%	10.92%

Volatility and Risk

Smith Douglas Homes has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Smith Douglas Homes’ rivals have a beta of 2.72, indicating that their average share price is 172% more volatile than the S&P 500.

Earnings & Valuation

This table compares Smith Douglas Homes and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Smith Douglas Homes	$975.46 million	$123.18 million	11.50
Smith Douglas Homes Competitors	$6.34 billion	$777.96 million	7.78

Smith Douglas Homes’ rivals have higher revenue and earnings than Smith Douglas Homes. Smith Douglas Homes is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Smith Douglas Homes rivals beat Smith Douglas Homes on 11 of the 13 factors compared.

Smith Douglas Homes Company Profile

Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.