Head to Head Survey: Smith Douglas Homes (SDHC) versus The Competition

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

Earnings and Valuation

This table compares Smith Douglas Homes and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Smith Douglas Homes	$975.46 million	$123.18 million	10.72
Smith Douglas Homes Competitors	$6.27 billion	$777.96 million	7.11

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

Risk & Volatility

Smith Douglas Homes has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Smith Douglas Homes’ peers have a beta of 2.56, indicating that their average stock price is 156% more volatile than the S&P 500.

Profitability

This table compares Smith Douglas Homes and its peers’ 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%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Smith Douglas Homes and its peers, as provided 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	400	1884	1737	53	2.35

Smith Douglas Homes currently has a consensus target price of $24.60, indicating a potential upside of 30.41%. As a group, “Operative builders” companies have a potential upside of 33.24%. Given Smith Douglas Homes’ peers stronger consensus rating and higher possible upside, analysts clearly believe Smith Douglas Homes has less favorable growth aspects than its peers.

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

Summary

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

About Smith Douglas Homes

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.