Smith Douglas Homes (NYSE:SDHC) & MJ (OTCMKTS:MJNE) Critical Comparison

Smith Douglas Homes (NYSE:SDHC) and MJ (OTCMKTS:MJNE) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Smith Douglas Homes and MJ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Douglas Homes	2	4	0	0	1.67
MJ	0	0	0	0	0.00

Smith Douglas Homes presently has a consensus price target of $17.50, indicating a potential upside of 7.98%. Given Smith Douglas Homes’ stronger consensus rating and higher possible upside, equities analysts plainly believe Smith Douglas Homes is more favorable than MJ.

Risk and Volatility

Smith Douglas Homes has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, MJ has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Douglas Homes	1.43%	1.74%	1.38%
MJ	N/A	N/A	N/A

Valuation & Earnings

This table compares Smith Douglas Homes and MJ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Douglas Homes	$1.01 billion	0.82	$16.07 million	$1.59	10.19
MJ	$360,000.00	0.02	-$5.38 million	N/A	N/A

Smith Douglas Homes has higher revenue and earnings than MJ.

Summary

Smith Douglas Homes beats MJ on 9 of the 9 factors compared between the two stocks.

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.

About MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.