Critical Analysis: United Homes Group (UHG) and The Competition

United Homes Group (NASDAQ:UHG) is one of 22 publicly-traded companies in the “Operative builders” industry, but how does it weigh in compared to its peers? We will compare United Homes Group to related businesses based on the strength of its earnings, dividends, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for United Homes Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Homes Group	0	0	0	0	N/A
United Homes Group Competitors	332	1646	1532	44	2.36

As a group, “Operative builders” companies have a potential downside of 13.06%. Given United Homes Group’s peers higher probable upside, analysts clearly believe United Homes Group has less favorable growth aspects than its peers.

Institutional & Insider Ownership

88.9% of United Homes Group shares are held by institutional investors. Comparatively, 89.1% of shares of all “Operative builders” companies are held by institutional investors. 85.3% of United Homes Group shares are held by company insiders. Comparatively, 21.5% of shares of all “Operative builders” companies 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.

Valuation & Earnings

This table compares United Homes Group and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
United Homes Group	$421.47 million	$125.06 million	-35.05
United Homes Group Competitors	$6.39 billion	$795.49 million	8.33

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

Profitability

This table compares United Homes Group and its peers’ 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	11.31%	15.46%	11.93%

Volatility and Risk

United Homes Group has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, United Homes Group’s peers have a beta of 2.66, suggesting that their average stock price is 166% more volatile than the S&P 500.

Summary

United Homes Group peers beat United Homes Group on 7 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.