Reviewing Viomi Technology (NASDAQ:VIOT) & Dream Finders Homes (NYSE:DFH)

Viomi Technology (NASDAQ:VIOT) and Dream Finders Homes (NYSE:DFH) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Risk and Volatility

Viomi Technology has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Dream Finders Homes has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viomi Technology	N/A	N/A	N/A
Dream Finders Homes	3.55%	10.43%	3.81%

Insider and Institutional Ownership

1.2% of Viomi Technology shares are held by institutional investors. Comparatively, 95.6% of Dream Finders Homes shares are held by institutional investors. 34.3% of Viomi Technology shares are held by company insiders. Comparatively, 69.1% of Dream Finders Homes shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Viomi Technology and Dream Finders Homes, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viomi Technology	1	0	0	0	1.00
Dream Finders Homes	2	4	0	1	2.00

Dream Finders Homes has a consensus target price of $26.00, suggesting a potential upside of 103.68%. Given Dream Finders Homes’ stronger consensus rating and higher probable upside, analysts clearly believe Dream Finders Homes is more favorable than Viomi Technology.

Valuation & Earnings

This table compares Viomi Technology and Dream Finders Homes”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viomi Technology	$347.23 million	0.15	$20.26 million	N/A	N/A
Dream Finders Homes	$4.32 billion	0.27	$217.20 million	$1.72	7.42

Dream Finders Homes has higher revenue and earnings than Viomi Technology.

Summary

Dream Finders Homes beats Viomi Technology on 12 of the 12 factors compared between the two stocks.

About Viomi Technology

Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising air conditioning systems, washing machines, water heaters, smart water kettles, sweeper robots, smart locks, and other smart devices, as well as blenders. It also provides a suite of complementary consumable products and small appliances, such as portable fans, rice cookers, water quality meters, water filter pitchers, stainless-steel insulated water bottles, smart toilet, and food waste disposals; and value-added services. The company sells its products directly to consumers through its online platform, Viomi mobile app, and e-commerce channels, including Youpin, JD.com, Tmall, Pinduoduo, and others, as well as offline experience stores. Viomi Technology Co., Ltd has a strategic partnership with Xiaomi Corporation. The company was founded in 2014 and is headquartered in Guangzhou, China.

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.