Analyzing Century Communities (NYSE:CCS) and Cricut (NASDAQ:CRCT)

Century Communities (NYSE:CCS) and Cricut (NASDAQ:CRCT) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Valuation & Earnings

This table compares Century Communities and Cricut”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Communities	$3.93 billion	0.52	$147.60 million	$4.56	15.63
Cricut	$708.78 million	1.80	$76.71 million	$0.35	17.34

Century Communities has higher revenue and earnings than Cricut. Century Communities is trading at a lower price-to-earnings ratio than Cricut, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Century Communities has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Cricut has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Dividends

Century Communities pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. Cricut pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. Century Communities pays out 28.1% of its earnings in the form of a dividend. Cricut pays out 57.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Century Communities has increased its dividend for 2 consecutive years.

Insider and Institutional Ownership

99.5% of Century Communities shares are owned by institutional investors. Comparatively, 19.6% of Cricut shares are owned by institutional investors. 13.7% of Century Communities shares are owned by company insiders. Comparatively, 16.5% of Cricut shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Century Communities and Cricut, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Communities	2	2	2	1	2.29
Cricut	4	1	0	0	1.20

Century Communities currently has a consensus price target of $67.00, suggesting a potential downside of 6.01%. Cricut has a consensus price target of $3.82, suggesting a potential downside of 37.10%. Given Century Communities’ stronger consensus rating and higher possible upside, research analysts plainly believe Century Communities is more favorable than Cricut.

Profitability

This table compares Century Communities and Cricut’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Century Communities	3.41%	6.06%	3.39%
Cricut	10.36%	21.37%	12.13%

Summary

Century Communities beats Cricut on 11 of the 18 factors compared between the two stocks.

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.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.