Reviewing Century Communities (NYSE:CCS) & Smith Douglas Homes (NYSE:SDHC)

Century Communities (NYSE:CCS) and Smith Douglas Homes (NYSE:SDHC) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Valuation and Earnings

This table compares Century Communities and Smith Douglas Homes’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Communities	$3.69 billion	0.76	$259.22 million	$8.05	10.90
Smith Douglas Homes	N/A	N/A	N/A	N/A	N/A

Century Communities has higher revenue and earnings than Smith Douglas Homes.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Century Communities	7.02%	11.57%	6.70%
Smith Douglas Homes	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Century Communities and Smith Douglas Homes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Communities	1	0	1	0	2.00
Smith Douglas Homes	0	5	1	0	2.17

Century Communities currently has a consensus price target of $96.00, suggesting a potential upside of 9.40%. Smith Douglas Homes has a consensus price target of $27.70, suggesting a potential downside of 4.52%. Given Century Communities’ higher possible upside, equities research analysts plainly believe Century Communities is more favorable than Smith Douglas Homes.

Institutional & Insider Ownership

99.5% of Century Communities shares are held by institutional investors. 11.9% of Century Communities shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Century Communities beats Smith Douglas Homes on 7 of the 8 factors compared between the two stocks.

About Century Communities

Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its homebuyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 18 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.

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.