Analyzing Beazer Homes USA (NYSE:BZH) & Crown Crafts (NASDAQ:CRWS)

Beazer Homes USA (NYSE:BZH) and Crown Crafts (NASDAQ:CRWS) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Beazer Homes USA and Crown Crafts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beazer Homes USA	1	3	0	0	1.75
Crown Crafts	0	1	0	0	2.00

Valuation & Earnings

This table compares Beazer Homes USA and Crown Crafts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beazer Homes USA	$2.08 billion	0.43	$45.59 million	($0.30)	-111.48
Crown Crafts	$83.55 million	0.32	$1.84 million	$0.47	5.34

Beazer Homes USA has higher revenue and earnings than Crown Crafts. Beazer Homes USA is trading at a lower price-to-earnings ratio than Crown Crafts, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Beazer Homes USA has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500. Comparatively, Crown Crafts has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Profitability

This table compares Beazer Homes USA and Crown Crafts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beazer Homes USA	-0.37%	0.18%	0.08%
Crown Crafts	5.99%	12.79%	6.84%

Institutional and Insider Ownership

85.7% of Beazer Homes USA shares are held by institutional investors. Comparatively, 30.2% of Crown Crafts shares are held by institutional investors. 8.0% of Beazer Homes USA shares are held by insiders. Comparatively, 12.3% of Crown Crafts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Crown Crafts beats Beazer Homes USA on 7 of the 12 factors compared between the two stocks.

About Beazer Homes USA

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.

About Crown Crafts

Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.