Critical Survey: Crown Crafts (NASDAQ:CRWS) and Champion Homes (NYSE:SKY)

Champion Homes (NYSE:SKY) and Crown Crafts (NASDAQ:CRWS) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Champion Homes and Crown Crafts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	3	5	1	2.78
Crown Crafts	1	0	0	0	1.00

Champion Homes presently has a consensus target price of $102.75, suggesting a potential upside of 9.23%. Given Champion Homes’ stronger consensus rating and higher probable upside, analysts plainly believe Champion Homes is more favorable than Crown Crafts.

Earnings and Valuation

This table compares Champion Homes and Crown Crafts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champion Homes	$2.66 billion	1.92	$206.90 million	$3.43	27.42
Crown Crafts	$82.27 million	0.33	$1.84 million	$0.47	5.35

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

Insider & Institutional Ownership

30.2% of Crown Crafts shares are held by institutional investors. 0.6% of Champion Homes 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 stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Champion Homes	7.16%	12.52%	9.29%
Crown Crafts	5.99%	12.79%	6.84%

Volatility and Risk

Champion Homes has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Crown Crafts has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Summary

Champion Homes beats Crown Crafts on 12 of the 15 factors compared between the two stocks.

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.

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.