Contrasting GoPro (NASDAQ:GPRO) and Dream Finders Homes (NYSE:DFH)

GoPro (NASDAQ:GPRO) and Dream Finders Homes (NYSE:DFH) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

GoPro has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500. Comparatively, Dream Finders Homes has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Valuation & Earnings

This table compares GoPro and Dream Finders Homes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoPro	$651.54 million	0.19	-$93.49 million	($0.79)	-0.92
Dream Finders Homes	$4.13 billion	0.33	$217.20 million	$1.43	10.56

Dream Finders Homes has higher revenue and earnings than GoPro. GoPro 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for GoPro and Dream Finders Homes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoPro	2	0	0	0	1.00
Dream Finders Homes	2	4	0	1	2.00

Dream Finders Homes has a consensus price target of $26.00, indicating a potential upside of 72.25%. Given Dream Finders Homes’ stronger consensus rating and higher probable upside, analysts clearly believe Dream Finders Homes is more favorable than GoPro.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoPro	-20.70%	-161.44%	-22.87%
Dream Finders Homes	3.55%	10.38%	3.79%

Insider & Institutional Ownership

70.1% of GoPro shares are held by institutional investors. Comparatively, 95.6% of Dream Finders Homes shares are held by institutional investors. 18.1% of GoPro shares are held by insiders. Comparatively, 69.1% of Dream Finders Homes shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Dream Finders Homes beats GoPro on 13 of the 14 factors compared between the two stocks.

About GoPro

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, magnetic swivel clips, chest harnesses, and head straps; media, display, and light mods; spare batteries, dive filters, and charging accessories and cables; and lifestyle gear, such as bags, backpacks, cases, t-shirts, hats, and other soft goods. In addition, the company provides mobile, desktop, and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. sells its products through retailers and wholesale distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.

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.