Contrasting Newell Brands (NASDAQ:NWL) and Dream Finders Homes (NYSE:DFH)

Newell Brands (NASDAQ:NWL) and Dream Finders Homes (NYSE:DFH) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Volatility and Risk

Newell Brands has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Dream Finders Homes has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500.

Institutional and Insider Ownership

92.5% of Newell Brands shares are held by institutional investors. Comparatively, 95.6% of Dream Finders Homes shares are held by institutional investors. 1.6% of Newell Brands shares are held by insiders. Comparatively, 66.0% of Dream Finders Homes shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Newell Brands and Dream Finders Homes”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newell Brands	$7.20 billion	0.31	-$285.00 million	($0.53)	-9.77
Dream Finders Homes	$4.32 billion	0.21	$217.20 million	$0.96	10.23

Dream Finders Homes has lower revenue, but higher earnings than Newell Brands. Newell Brands 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Newell Brands and Dream Finders Homes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newell Brands	2	4	3	1	2.30
Dream Finders Homes	2	3	0	1	2.00

Newell Brands currently has a consensus price target of $6.66, indicating a potential upside of 28.50%. Given Newell Brands’ stronger consensus rating and higher possible upside, equities analysts plainly believe Newell Brands is more favorable than Dream Finders Homes.

Profitability

This table compares Newell Brands and Dream Finders Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newell Brands	-4.42%	13.41%	2.94%
Dream Finders Homes	2.56%	8.87%	3.20%

Summary

Dream Finders Homes beats Newell Brands on 8 of the 14 factors compared between the two stocks.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.

About Dream Finders Homes

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.