Critical Survey: Whirlpool (NYSE:WHR) vs. Dream Finders Homes (NYSE:DFH)

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

Valuation & Earnings

This table compares Dream Finders Homes and Whirlpool”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	0.25	$217.20 million	$0.96	12.25
Whirlpool	$15.52 billion	0.13	$318.00 million	($2.17)	-13.66

Whirlpool has higher revenue and earnings than Dream Finders Homes. Whirlpool 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 Whirlpool’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%
Whirlpool	-0.93%	0.47%	0.10%

Analyst Recommendations

This is a summary of recent ratings and price targets for Dream Finders Homes and Whirlpool, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dream Finders Homes	2	3	0	1	2.00
Whirlpool	5	8	0	0	1.62

Whirlpool has a consensus price target of $32.22, indicating a potential upside of 8.73%. Given Whirlpool’s higher probable upside, analysts plainly believe Whirlpool is more favorable than Dream Finders Homes.

Insider & Institutional Ownership

95.6% of Dream Finders Homes shares are held by institutional investors. Comparatively, 90.8% of Whirlpool shares are held by institutional investors. 66.0% of Dream Finders Homes shares are held by insiders. Comparatively, 2.0% of Whirlpool shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Dream Finders Homes has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Whirlpool has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Summary

Dream Finders Homes beats Whirlpool 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 Whirlpool

Whirlpool Corporation is a home-appliance manufacturer headquartered in Benton Harbor, Michigan. Its products include refrigerators and freezers, ranges and ovens, dishwashers, washing machines and dryers, as well as related parts and accessories. The company sells products under brands including Whirlpool, KitchenAid, Maytag, JennAir and Amana. Its offerings serve residential customers, with products distributed across multiple international markets. Founded in 1911 as the Upton Machine Company, Whirlpool adopted its current name in 1949.