Critical Comparison: Smith Douglas Homes (NYSE:SDHC) versus iCoreConnect (NASDAQ:ICCT)

iCoreConnect (NASDAQ:ICCT) and Smith Douglas Homes (NYSE:SDHC) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Risk & Volatility

iCoreConnect has a beta of 33.29, suggesting that its stock price is 3,229% more volatile than the S&P 500. Comparatively, Smith Douglas Homes has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

13.4% of iCoreConnect shares are owned by institutional investors. 59.4% of iCoreConnect shares are owned by company insiders. Comparatively, 84.2% of Smith Douglas Homes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for iCoreConnect and Smith Douglas Homes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iCoreConnect	0	0	0	0	0.00
Smith Douglas Homes	2	7	1	0	1.90

Smith Douglas Homes has a consensus price target of $13.90, indicating a potential downside of 0.07%. Given Smith Douglas Homes’ stronger consensus rating and higher possible upside, analysts plainly believe Smith Douglas Homes is more favorable than iCoreConnect.

Profitability

This table compares iCoreConnect and Smith Douglas Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iCoreConnect	-263.12%	-1,451.73%	-171.32%
Smith Douglas Homes	0.64%	-0.19%	-0.14%

Earnings & Valuation

This table compares iCoreConnect and Smith Douglas Homes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iCoreConnect	$11.05 million	0.00	-$15.55 million	($44.40)	-0.00
Smith Douglas Homes	$971.12 million	0.73	$10.69 million	$0.95	14.64

Smith Douglas Homes has higher revenue and earnings than iCoreConnect. iCoreConnect is trading at a lower price-to-earnings ratio than Smith Douglas Homes, indicating that it is currently the more affordable of the two stocks.

Summary

Smith Douglas Homes beats iCoreConnect on 12 of the 14 factors compared between the two stocks.

About iCoreConnect

iCoreConnect Inc., a cloud-based software and technology company, provides Health Insurance Portability and Accountability Act (HIPAA) compliant cloud-based software as a service (SaaS) in the United States. The company’s products include iCoreRx, a HIPAA compliant electronic prescription software; iCorePDMP, a solution that checks the patient’s Prescription Drug Monitoring Program (PDMP) history before prescribing controlled substances; iCoreVerify and iCoreVerify+, a HIPAA compliant SaaS solution that automatically retrieves a patients insurance eligibility breakdown to verify their benefits in advance of their appointment and on-demand; iCoreHuddle and iCoreHuddle+, a tool to instantly reveal the revenue potential of each patient; and iCoreCodeGenius, a medical coding reference SaaS solution. It also offers iCoreExchange, a SaaS email solution that allows doctors to send and receive secure email with attachments to and from other healthcare professionals; iCoreCloud, ability to backup their on-premise servers and computers to the cloud; iCoreClaims, for processing and managing claims submitted by policyholders or dental care providers; iCorePay, a patient payment processing solutions for payment and revenue cycle tracking; iCoreSecure, secure SaaS solution that solves privacy concerns in the insurance, real estate, financial and many other industry sectors; and iCoreIT, an IT managed services. The company was formerly known as iMedicor, Inc. and changed its name to iCoreConnect Inc. in June 2017. iCoreConnect Inc. was founded in 1992 and is headquartered in Ocoee, Florida.

About Smith Douglas Homes

Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.