Cavco Industries (NASDAQ:CVCO – Get Free Report) and Century Communities (NYSE:CCS – Get Free Report) are both mid-cap consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
95.6% of Cavco Industries shares are held by institutional investors. Comparatively, 99.5% of Century Communities shares are held by institutional investors. 1.6% of Cavco Industries shares are held by company insiders. Comparatively, 11.9% of Century Communities shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and target prices for Cavco Industries and Century Communities, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Cavco Industries | 0 | 0 | 2 | 0 | 3.00 |
Century Communities | 0 | 1 | 1 | 0 | 2.50 |
Risk and Volatility
Cavco Industries has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Century Communities has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Earnings and Valuation
This table compares Cavco Industries and Century Communities’ gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Cavco Industries | $1.80 billion | 1.78 | $157.82 million | $18.35 | 21.08 |
Century Communities | $4.08 billion | 0.72 | $259.22 million | $9.01 | 10.24 |
Century Communities has higher revenue and earnings than Cavco Industries. Century Communities is trading at a lower price-to-earnings ratio than Cavco Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cavco Industries and Century Communities’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Cavco Industries | 8.12% | 14.30% | 10.81% |
Century Communities | 7.90% | 14.00% | 8.10% |
Summary
Cavco Industries beats Century Communities on 8 of the 14 factors compared between the two stocks.
About Cavco Industries
Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.
About Century Communities
Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its homebuyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 18 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.
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