United Homes Group (NASDAQ:UHG – Get Free Report) and Hovnanian Enterprises (NYSE:HOV – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Valuation and Earnings
This table compares United Homes Group and Hovnanian Enterprises’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Homes Group | N/A | N/A | $7.07 million | N/A | N/A |
| Hovnanian Enterprises | $2.92 billion | 0.14 | $225.49 million | $21.35 | 3.22 |
Hovnanian Enterprises has higher revenue and earnings than United Homes Group.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Homes Group | 0 | 0 | 0 | 0 | N/A |
| Hovnanian Enterprises | 0 | 0 | 0 | 0 | N/A |
Risk & Volatility
United Homes Group has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Hovnanian Enterprises has a beta of 2.51, meaning that its stock price is 151% more volatile than the S&P 500.
Profitability
This table compares United Homes Group and Hovnanian Enterprises’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Homes Group | N/A | -16.80% | 6.73% |
| Hovnanian Enterprises | 5.96% | 60.51% | 7.05% |
Insider & Institutional Ownership
20.5% of United Homes Group shares are held by institutional investors. Comparatively, 61.0% of Hovnanian Enterprises shares are held by institutional investors. 20.0% of United Homes Group shares are held by insiders. Comparatively, 20.3% of Hovnanian Enterprises shares are held by 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
Hovnanian Enterprises beats United Homes Group on 8 of the 8 factors compared between the two stocks.
About United Homes Group
United Homes Group, Inc., a land development and homebuilding company, designs, builds, and sells homes in South Carolina. It provides a series of single-family detached and attached homes for entry-level buyers, first-time move-ups, second-time move-ups, and third-time move-ups, as well as offers custom builds. The company was founded in 2004 and is based in Irmo, South Carolina.
About Hovnanian Enterprises
Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas. The company markets and builds homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans and title insurance services. The company was founded in 1959 and is headquartered in Matawan, New Jersey.
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