Switchback Energy Acquisition (NYSE:SBE) and Landsea Homes (NASDAQ:LSEA) are both small-cap unclassified companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Profitability
This table compares Switchback Energy Acquisition and Landsea Homes' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Switchback Energy Acquisition | N/A | N/A | N/A |
Landsea Homes | N/A | -16.36% | -0.55% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Switchback Energy Acquisition and Landsea Homes, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Switchback Energy Acquisition | 0 | 0 | 2 | 0 | 3.00 |
Landsea Homes | 0 | 1 | 1 | 0 | 2.50 |
Switchback Energy Acquisition presently has a consensus price target of $46.00, indicating a potential upside of 39.73%. Landsea Homes has a consensus price target of $13.00, indicating a potential upside of 47.39%. Given Landsea Homes' higher probable upside, analysts plainly believe Landsea Homes is more favorable than Switchback Energy Acquisition.
Valuation & Earnings
This table compares Switchback Energy Acquisition and Landsea Homes' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Switchback Energy Acquisition | N/A | N/A | $780,000.00 | N/A | N/A |
Landsea Homes | N/A | N/A | $1.77 million | N/A | N/A |
Risk & Volatility
Switchback Energy Acquisition has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, Landsea Homes has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.
Institutional and Insider Ownership
28.8% of Switchback Energy Acquisition shares are held by institutional investors. Comparatively, 66.8% of Landsea Homes shares are held by institutional investors. 22.6% of Landsea Homes shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Switchback Energy Acquisition beats Landsea Homes on 5 of the 9 factors compared between the two stocks.