Contrasting FTAI Infrastructure (NASDAQ:FIP) & Smith Douglas Homes (NYSE:SDHC)

Smith Douglas Homes (NYSE:SDHC) and FTAI Infrastructure (NASDAQ:FIP) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

87.4% of FTAI Infrastructure shares are owned by institutional investors. 82.7% of Smith Douglas Homes shares are owned by company insiders. Comparatively, 2.4% of FTAI Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Smith Douglas Homes and FTAI Infrastructure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Douglas Homes	$975.46 million	0.93	$16.07 million	$1.25	14.08
FTAI Infrastructure	$331.50 million	1.70	-$223.65 million	($2.46)	-1.97

Smith Douglas Homes has higher revenue and earnings than FTAI Infrastructure. FTAI Infrastructure is trading at a lower price-to-earnings ratio than Smith Douglas Homes, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Smith Douglas Homes and FTAI Infrastructure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Douglas Homes	3	5	1	0	1.78
FTAI Infrastructure	1	0	2	0	2.33

Smith Douglas Homes presently has a consensus price target of $16.60, suggesting a potential downside of 5.66%. FTAI Infrastructure has a consensus price target of $11.00, suggesting a potential upside of 127.27%. Given FTAI Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe FTAI Infrastructure is more favorable than Smith Douglas Homes.

Profitability

This table compares Smith Douglas Homes and FTAI Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith Douglas Homes	1.13%	0.12%	0.10%
FTAI Infrastructure	-41.09%	-75.13%	-3.02%

Risk and Volatility

Smith Douglas Homes has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, FTAI Infrastructure has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Summary

Smith Douglas Homes beats FTAI Infrastructure on 8 of the 14 factors compared between the two stocks.

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.

About FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.