United Homes Group (NASDAQ:UHG – Get Free Report) and Forestar Group (NYSE:FOR – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Valuation & Earnings
This table compares United Homes Group and Forestar Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Homes Group | $463.71 million | 0.20 | $46.91 million | ($0.32) | -4.94 |
| Forestar Group | $1.66 billion | 0.84 | $167.90 million | $3.29 | 8.33 |
Risk and Volatility
United Homes Group has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Forestar Group has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for United Homes Group and Forestar Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Homes Group | 1 | 0 | 0 | 0 | 1.00 |
| Forestar Group | 0 | 3 | 4 | 0 | 2.57 |
Forestar Group has a consensus target price of $32.00, suggesting a potential upside of 16.75%. Given Forestar Group’s stronger consensus rating and higher probable upside, analysts clearly believe Forestar Group is more favorable than United Homes Group.
Insider and Institutional Ownership
88.9% of United Homes Group shares are owned by institutional investors. Comparatively, 35.5% of Forestar Group shares are owned by institutional investors. 85.3% of United Homes Group shares are owned by insiders. Comparatively, 0.5% of Forestar Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares United Homes Group and Forestar Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Homes Group | -4.49% | -37.81% | -9.88% |
| Forestar Group | 10.11% | 10.08% | 5.52% |
Summary
Forestar Group beats United Homes Group on 12 of the 14 factors compared between the two stocks.
About United Homes Group
United Homes Group, Inc., a homebuilding company, engages in the design, building, and sale of homes in South Carolina, North Carolina, and Georgia. It provides detached single-family houses, as well as attached single-family houses, including duplex and town houses for entry-level buyers, first time move-ups, second time move-ups, third time move-ups, and custom builds. The company was founded in 2004 and is headquartered in Chapin, South Carolina.
About Forestar Group
Forestar Group Inc. operates as a residential lot development company in the United States. The company acquires land and develops infrastructure for single-family residential communities. It sells its residential single-family finished lots to local, regional, and national homebuilders. The company was incorporated in 2005 and is headquartered in Arlington, Texas. Forestar Group Inc. operates as a subsidiary of D.R. Horton, Inc.
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