Cavco Industries (NASDAQ:CVCO) versus Taylor Wimpey (OTCMKTS:TWODF) Head-To-Head Review

Taylor Wimpey (OTCMKTS:TWODF) and Cavco Industries (NASDAQ:CVCO) are both consumer cyclical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Profitability

This table compares Taylor Wimpey and Cavco Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Wimpey	N/A	N/A	N/A
Cavco Industries	8.12%	14.30%	10.81%

Insider and Institutional Ownership

39.9% of Taylor Wimpey shares are held by institutional investors. Comparatively, 95.6% of Cavco Industries shares are held by institutional investors. 1.6% of Cavco Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Taylor Wimpey and Cavco Industries’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Wimpey	N/A	N/A	N/A	$0.09	21.71
Cavco Industries	$1.80 billion	1.78	$157.82 million	$18.35	21.08

Cavco Industries has higher revenue and earnings than Taylor Wimpey. Cavco Industries is trading at a lower price-to-earnings ratio than Taylor Wimpey, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Taylor Wimpey and Cavco Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Wimpey	0	1	0	0	2.00
Cavco Industries	0	0	2	0	3.00

Cavco Industries has a consensus price target of $423.50, indicating a potential upside of 9.47%. Given Cavco Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Cavco Industries is more favorable than Taylor Wimpey.

Summary

Cavco Industries beats Taylor Wimpey on 10 of the 11 factors compared between the two stocks.

About Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.

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.