Critical Comparison: Cavco Industries (NASDAQ:CVCO) and Ming Shing Group (NASDAQ:MSW)

Cavco Industries (NASDAQ:CVCO) and Ming Shing Group (NASDAQ:MSW) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares Cavco Industries and Ming Shing Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cavco Industries	$2.02 billion	1.68	$171.04 million	$20.76	20.21
Ming Shing Group	$27.57 million	2.28	$2.33 million	N/A	N/A

Cavco Industries has higher revenue and earnings than Ming Shing Group.

Analyst Ratings

This is a breakdown of recent recommendations for Cavco Industries and Ming Shing Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cavco Industries	0	1	1	0	2.50
Ming Shing Group	0	0	0	0	0.00

Cavco Industries presently has a consensus target price of $522.50, indicating a potential upside of 24.54%. Given Cavco Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe Cavco Industries is more favorable than Ming Shing Group.

Profitability

This table compares Cavco Industries and Ming Shing Group’s 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%
Ming Shing Group	N/A	N/A	N/A

Insider and Institutional Ownership

95.6% of Cavco Industries shares are held by institutional investors. 1.6% of Cavco Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Cavco Industries beats Ming Shing Group on 10 of the 11 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 Ming Shing Group

Ming Shing Group Holdings Limited is a company mainly engaged in wet trades works, such as plastering works, tile laying works, brick laying works, floor screeding works and marble works. Ming Shing Group Holdings Limited is based in Hong Kong.