Cavco Industries (NASDAQ:CVCO – Get Free Report) and Patrick Industries (NASDAQ:PATK – Get Free Report) are both mid-cap construction companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Earnings and Valuation
This table compares Cavco Industries and Patrick Industries”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cavco Industries | $2.02 billion | 1.59 | $171.04 million | $20.76 | 19.13 |
| Patrick Industries | $3.72 billion | 0.80 | $138.40 million | $4.17 | 21.36 |
Volatility and Risk
Cavco Industries has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Patrick Industries has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for Cavco Industries and Patrick Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cavco Industries | 0 | 1 | 1 | 0 | 2.50 |
| Patrick Industries | 0 | 3 | 6 | 0 | 2.67 |
Cavco Industries currently has a consensus price target of $522.50, indicating a potential upside of 31.54%. Patrick Industries has a consensus price target of $96.42, indicating a potential upside of 8.25%. Given Cavco Industries’ higher possible upside, equities analysts plainly believe Cavco Industries is more favorable than Patrick Industries.
Institutional and Insider Ownership
95.6% of Cavco Industries shares are held by institutional investors. Comparatively, 93.3% of Patrick Industries shares are held by institutional investors. 1.6% of Cavco Industries shares are held by insiders. Comparatively, 4.4% of Patrick Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Cavco Industries and Patrick Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cavco Industries | 8.49% | 17.00% | 12.82% |
| Patrick Industries | 3.74% | 12.90% | 4.71% |
Summary
Cavco Industries beats Patrick Industries 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 Patrick Industries
Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.
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