Dream Finders Homes (NYSE:DFH – Get Free Report) and Cricut (NASDAQ:CRCT – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Dream Finders Homes and Cricut, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dream Finders Homes | 2 | 4 | 0 | 1 | 2.00 |
| Cricut | 4 | 1 | 0 | 1 | 1.67 |
Dream Finders Homes currently has a consensus target price of $26.00, indicating a potential upside of 138.42%. Cricut has a consensus target price of $4.07, indicating a potential downside of 35.76%. Given Dream Finders Homes’ stronger consensus rating and higher possible upside, equities analysts plainly believe Dream Finders Homes is more favorable than Cricut.
Risk and Volatility
Profitability
This table compares Dream Finders Homes and Cricut’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dream Finders Homes | 3.55% | 10.38% | 3.79% |
| Cricut | 12.71% | 24.57% | 15.42% |
Insider and Institutional Ownership
95.6% of Dream Finders Homes shares are held by institutional investors. Comparatively, 19.6% of Cricut shares are held by institutional investors. 66.0% of Dream Finders Homes shares are held by insiders. Comparatively, 16.5% of Cricut shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Dream Finders Homes and Cricut”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 | 0.23 | $217.20 million | $1.43 | 7.63 |
| Cricut | $708.78 million | 1.87 | $76.71 million | $0.43 | 14.72 |
Dream Finders Homes has higher revenue and earnings than Cricut. Dream Finders Homes is trading at a lower price-to-earnings ratio than Cricut, indicating that it is currently the more affordable of the two stocks.
Summary
Dream Finders Homes beats Cricut on 8 of the 13 factors compared between the two stocks.
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.
About Cricut
Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.
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