Head-To-Head Contrast: Dream Finders Homes (NASDAQ:DFH) vs. Second Street Capital (OTCMKTS:CTON)

Dream Finders Homes (NASDAQ:DFHGet Rating) and Second Street Capital (OTCMKTS:CTONGet Rating) are both small-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Dream Finders Homes and Second Street Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dream Finders Homes 1 2 0 0 1.67
Second Street Capital 0 0 0 0 N/A

Dream Finders Homes presently has a consensus price target of $14.25, suggesting a potential upside of 27.69%. Given Dream Finders Homes’ higher probable upside, equities research analysts clearly believe Dream Finders Homes is more favorable than Second Street Capital.

Institutional and Insider Ownership

17.3% of Dream Finders Homes shares are held by institutional investors. 74.3% of Dream Finders Homes shares are held by insiders. Comparatively, 71.9% of Second Street Capital 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.

Profitability

This table compares Dream Finders Homes and Second Street Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dream Finders Homes 6.63% 39.42% 9.83%
Second Street Capital N/A N/A N/A

Risk & Volatility

Dream Finders Homes has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Second Street Capital has a beta of 21.2, suggesting that its share price is 2,020% more volatile than the S&P 500.

Earnings and Valuation

This table compares Dream Finders Homes and Second Street Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dream Finders Homes $1.92 billion 0.54 $121.13 million $1.48 7.54
Second Street Capital N/A N/A N/A N/A N/A

Dream Finders Homes has higher revenue and earnings than Second Street Capital.

Summary

Dream Finders Homes beats Second Street Capital on 7 of the 8 factors compared between the two stocks.

About Dream Finders Homes (Get Rating)

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.

About Second Street Capital (Get Rating)

Second Street Capital, Inc. operates as a specialty finance company in the United States. It provides asset based lending to small and medium sized businesses, export trading companies, and small and medium sized homebuilders, developers, and investors. The company offers revenue participation asset based and mortgage loans, as well as preferred equity investments and senior secured loans. It also makes and manages investments in qualified real estate related assets as a principal and on behalf of institutional clients. The company was formerly known as Calton, Inc. and changed its name to Second Street Capital, Inc. in November 2011. Second Street Capital, Inc. was founded in 1969 and is headquartered in Fort Lauderdale, Florida.

Receive News & Ratings for Dream Finders Homes Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dream Finders Homes and related companies with MarketBeat.com's FREE daily email newsletter.