Harbor Custom Development (HCDI) versus The Competition Critical Review



Harbor Custom Development (NASDAQ:HCDIGet Rating) is one of 21 public companies in the “Operative builders” industry, but how does it contrast to its competitors? We will compare Harbor Custom Development to related companies based on the strength of its profitability, analyst recommendations, dividends, institutional ownership, risk, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Harbor Custom Development and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harbor Custom Development 0 0 0 0 N/A
Harbor Custom Development Competitors 389 1521 1381 89 2.35

As a group, “Operative builders” companies have a potential upside of 22.02%. Given Harbor Custom Development’s competitors higher probable upside, analysts clearly believe Harbor Custom Development has less favorable growth aspects than its competitors.

Profitability

This table compares Harbor Custom Development and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harbor Custom Development 12.24% 27.49% 7.64%
Harbor Custom Development Competitors 11.33% 150.74% 11.94%

Volatility & Risk

Harbor Custom Development has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Harbor Custom Development’s competitors have a beta of 2.32, meaning that their average share price is 132% more volatile than the S&P 500.

Valuation & Earnings

This table compares Harbor Custom Development and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Harbor Custom Development $72.35 million $8.86 million 7.07
Harbor Custom Development Competitors $5.49 billion $684.36 million 7.40

Harbor Custom Development’s competitors have higher revenue and earnings than Harbor Custom Development. Harbor Custom Development is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

10.6% of Harbor Custom Development shares are held by institutional investors. Comparatively, 75.6% of shares of all “Operative builders” companies are held by institutional investors. 20.6% of Harbor Custom Development shares are held by company insiders. Comparatively, 18.1% of shares of all “Operative builders” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Harbor Custom Development competitors beat Harbor Custom Development on 8 of the 10 factors compared.

Harbor Custom Development Company Profile (Get Rating)

Harbor Custom Development, Inc. engages in the real estate development business in Western Washington’s Puget Sound region; Austin, Texas; Sacramento, California; and Punta Gorda, Florida. The company is involved in the land development cycle activities, including land acquisition, entitlements, construction of project infrastructure, home building, marketing, sale, and management of various residential projects. It undertakes projects, such as residential lots, home communities, and single family and multi-family properties. The company was formerly known as Harbor Custom Homes, Inc. and changed its name to Harbor Custom Development, Inc. in August 2019. Harbor Custom Development, Inc. was incorporated in 2014 and is headquartered in Gig Harbor, Washington.



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