Dream Finders Homes (NYSE:DFH – Get Free Report) and Newell Brands (NASDAQ:NWL – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Valuation and Earnings
This table compares Dream Finders Homes and Newell Brands”s top-line 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 | 0.26 | $217.20 million | $0.96 | 12.34 |
| Newell Brands | $7.20 billion | 0.35 | -$285.00 million | ($0.77) | -7.77 |
Dream Finders Homes has higher earnings, but lower revenue than Newell Brands. Newell Brands 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.
Risk & Volatility
Dream Finders Homes has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Profitability
This table compares Dream Finders Homes and Newell Brands’ 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% |
| Newell Brands | -4.42% | 13.41% | 2.94% |
Insider and Institutional Ownership
95.6% of Dream Finders Homes shares are held by institutional investors. Comparatively, 92.5% of Newell Brands shares are held by institutional investors. 66.0% of Dream Finders Homes shares are held by company insiders. Comparatively, 1.6% of Newell Brands shares are held by company 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 summary of recent ratings and price targets for Dream Finders Homes and Newell Brands, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dream Finders Homes | 2 | 3 | 0 | 1 | 2.00 |
| Newell Brands | 2 | 4 | 3 | 1 | 2.30 |
Newell Brands has a consensus price target of $6.62, indicating a potential upside of 10.71%. Given Newell Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Newell Brands is more favorable than Dream Finders Homes.
Summary
Dream Finders Homes beats Newell Brands on 8 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 Newell Brands
Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.
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