Head to Head Review: Smith Douglas Homes (NYSE:SDHC) versus United Homes Group (NASDAQ:UHG)

Smith Douglas Homes (NYSE:SDHC) and United Homes Group (NASDAQ:UHG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Douglas Homes	N/A	N/A	N/A
United Homes Group	82.93%	-295.76%	32.12%

Valuation & Earnings

This table compares Smith Douglas Homes and United Homes Group’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	$764.63 million	1.62	$123.18 million	N/A	N/A
United Homes Group	$421.47 million	0.73	$125.06 million	$5.68	1.12

United Homes Group has lower revenue, but higher earnings than Smith Douglas Homes.

Analyst Ratings

This is a summary of recent recommendations for Smith Douglas Homes and United Homes Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Douglas Homes	0	5	1	0	2.17
United Homes Group	0	0	0	0	N/A

Smith Douglas Homes currently has a consensus target price of $27.10, suggesting a potential upside of 11.84%. Given Smith Douglas Homes’ higher probable upside, equities analysts plainly believe Smith Douglas Homes is more favorable than United Homes Group.

Institutional and Insider Ownership

88.9% of United Homes Group shares are held by institutional investors. 85.3% of United Homes Group shares are held 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.

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 United Homes Group

United Homes Group, Inc., a homebuilding company, engages in the design, building, and sale of homes in South Carolina, North Carolina, and Georgia. It provides detached single-family houses, as well as attached single-family houses, including duplex and town houses for entry-level buyers, first time move-ups, second time move-ups, third time move-ups, and custom builds. The company was founded in 2004 and is headquartered in Chapin, South Carolina.