Reviewing Dream Finders Homes (NYSE:DFH) and Zepp Health (NYSE:ZEPP)

Zepp Health (NYSE:ZEPP) and Dream Finders Homes (NYSE:DFH) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Zepp Health and Dream Finders Homes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zepp Health	1	0	1	0	2.00
Dream Finders Homes	2	4	0	0	1.67

Zepp Health presently has a consensus price target of $53.01, indicating a potential upside of 1,778.45%. Given Zepp Health’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Zepp Health is more favorable than Dream Finders Homes.

Valuation & Earnings

This table compares Zepp Health and Dream Finders Homes”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zepp Health	$258.90 million	0.16	-$40.07 million	($2.75)	-1.03
Dream Finders Homes	$4.32 billion	0.22	$217.20 million	$0.96	11.10

Dream Finders Homes has higher revenue and earnings than Zepp Health. Zepp Health 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.

Volatility and Risk

Zepp Health has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500. Comparatively, Dream Finders Homes has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Profitability

This table compares Zepp Health and Dream Finders Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zepp Health	-15.78%	-19.64%	-7.18%
Dream Finders Homes	2.56%	8.87%	3.20%

Institutional & Insider Ownership

52.6% of Zepp Health shares are owned by institutional investors. Comparatively, 95.6% of Dream Finders Homes shares are owned by institutional investors. 36.0% of Zepp Health shares are owned by company insiders. Comparatively, 66.0% of Dream Finders Homes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Dream Finders Homes beats Zepp Health on 11 of the 14 factors compared between the two stocks.

About Zepp Health

Zepp Health develops wearable technology and connected health products for consumers. Its offerings include Amazfit- and Zepp-branded smartwatches and fitness trackers, along with related devices and software for monitoring activity, sleep and other health measures. The company combines its devices with mobile apps and Zepp OS, a platform for health and fitness data, coaching and third-party services. Its products are sold in international markets, including North America, Europe and Asia. Founded in China as Huami, the company adopted the name Zepp Health in 2021.

About Dream Finders Homes

Dream Finders Homes, Inc. is a homebuilding company that designs, builds and sells single-family homes and townhomes. Its offerings include homes in a range of styles and price points, with options that allow buyers to personalize features and finishes. Founded in 2008 and headquartered in Jacksonville, Florida, the company serves homebuyers in markets across the Southeast and Mid-Atlantic, as well as select markets in other regions. It operates under the Dream Finders Homes brand and other regional homebuilding brands.