Critical Contrast: Zepp Health (NYSE:ZEPP) & Dream Finders Homes (NYSE:DFH)

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

Risk & Volatility

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Dream Finders Homes and Zepp Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dream Finders Homes	2	3	0	0	1.60
Zepp Health	1	0	1	0	2.00

Zepp Health has a consensus price target of $53.01, indicating a potential upside of 1,995.26%. Given Zepp Health’s stronger consensus rating and higher possible upside, analysts clearly believe Zepp Health is more favorable than Dream Finders Homes.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dream Finders Homes	$4.32 billion	0.23	$217.20 million	$0.96	11.53
Zepp Health	$276.03 million	0.13	-$40.07 million	($2.75)	-0.92

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.

Profitability

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

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

Institutional and Insider Ownership

95.6% of Dream Finders Homes shares are held by institutional investors. Comparatively, 52.6% of Zepp Health shares are held by institutional investors. 66.0% of Dream Finders Homes shares are held by company insiders. Comparatively, 36.0% of Zepp Health shares are held 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 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.

About Zepp Health

Zepp Health Corporation (NYSE: ZEPP) is a global health technology company that develops smart wearable devices and digital health services. The company’s product portfolio includes smartwatches, fitness trackers, smart scales and related accessories designed to help consumers monitor activity, sleep, heart health and other wellness indicators. Zepp Health markets products primarily under the Amazfit and Zepp brands. Its connected-device ecosystem is supported by the Zepp app, which provides health and fitness data analysis, activity tracking, workout features and other software-based services.