Critical Analysis: United Homes Group (UHG) and Its Competitors

United Homes Group (NASDAQ:UHG) is one of 19 public companies in the “Operative builders” industry, but how does it contrast to its rivals? We will compare United Homes Group to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

88.9% of United Homes Group shares are owned by institutional investors. Comparatively, 88.2% of shares of all “Operative builders” companies are owned by institutional investors. 85.3% of United Homes Group shares are owned by company insiders. Comparatively, 23.8% of shares of all “Operative builders” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

United Homes Group has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, United Homes Group’s rivals have a beta of 2.83, suggesting that their average share price is 183% more volatile than the S&P 500.

Profitability

This table compares United Homes Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Homes Group	29.67%	-76.74%	33.69%
United Homes Group Competitors	10.78%	13.82%	10.92%

Valuation & Earnings

This table compares United Homes Group and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
United Homes Group	$421.47 million	$125.06 million	-34.95
United Homes Group Competitors	$5.98 billion	$726.61 million	8.13

United Homes Group’s rivals have higher revenue and earnings than United Homes Group. United Homes Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations for United Homes Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Homes Group	0	0	0	0	N/A
United Homes Group Competitors	233	1228	1252	32	2.39

As a group, “Operative builders” companies have a potential downside of 10.30%. Given United Homes Group’s rivals higher possible upside, analysts clearly believe United Homes Group has less favorable growth aspects than its rivals.

Summary

United Homes Group rivals beat United Homes Group on 6 of the 10 factors compared.

United Homes Group Company Profile

United Homes Group, Inc., a land development and homebuilding company, designs, builds, and sells homes in South Carolina, North Carolina, and Georgia. It provides residential products, including entry-level attached and detached homes, first-time move up attached and detached homes, and second move-up detached homes. The company was founded in 2004 and is based in Chapin, South Carolina.