Reviewing Champion Homes (NYSE:SKY) and Hamilton Beach Brands (NYSE:HBB)

Hamilton Beach Brands (NYSE:HBB) and Champion Homes (NYSE:SKY) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Institutional and Insider Ownership

50.5% of Hamilton Beach Brands shares are owned by institutional investors. 39.0% of Hamilton Beach Brands shares are owned by company insiders. Comparatively, 0.6% of Champion Homes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Hamilton Beach Brands has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Champion Homes has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hamilton Beach Brands and Champion Homes”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Beach Brands	$606.85 million	0.77	$26.45 million	$4.25	8.17
Champion Homes	$2.66 billion	1.65	$206.90 million	$3.43	23.62

Champion Homes has higher revenue and earnings than Hamilton Beach Brands. Hamilton Beach Brands is trading at a lower price-to-earnings ratio than Champion Homes, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hamilton Beach Brands and Champion Homes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Beach Brands	0	0	1	0	3.00
Champion Homes	0	3	5	1	2.78

Champion Homes has a consensus price target of $104.00, suggesting a potential upside of 28.38%. Given Champion Homes’ higher possible upside, analysts plainly believe Champion Homes is more favorable than Hamilton Beach Brands.

Profitability

This table compares Hamilton Beach Brands and Champion Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Beach Brands	9.41%	30.70%	14.62%
Champion Homes	7.16%	12.52%	9.29%

Summary

Champion Homes beats Hamilton Beach Brands on 8 of the 15 factors compared between the two stocks.

About Hamilton Beach Brands

Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally. It offers air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. The company also provides consumer products under the Hamilton Beach and Proctor Silex brands; products under the Hamilton Beach Professional in the premium market; farm-to-table and field-to-table food processing equipment under the Weston brand; countertop appliances under the Wolf Gourmet brand; garment care products under the CHI brand; cocktail delivery system under the Bartesian brand; air purifiers under the Clorox and TrueAir brands; and water filtration systems under the Brita brand. In addition, it offers injection care management system under the Hamilton Beach Health brand; and commercial products under the Hamilton Beach Commercial and the Proctor Silex Commercial brands, as well as supplies private label products. The company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety store and drug store chains, specialty home retailers, distributors, restaurants, fast food chains, bars, hotels, and other retail outlets. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.

About Champion Homes

Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada. The company also provides construction services to install and set-up factory-built homes; operates a factory-direct manufactured home retail business under the Titan Factory Direct and Champion Homes Center brand names with 31 sales centers in the United States; and engages in the transportation of manufactured homes and recreational vehicles. The company was founded in 2010 and is headquartered in Troy, Michigan.