Cavco Industries (NASDAQ:CVCO) and Century Communities (NYSE:CCS) Critical Survey

Cavco Industries (NASDAQ:CVCO) and Century Communities (NYSE:CCS) are both mid-cap consumer cyclical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Cavco Industries and Century Communities, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cavco Industries	0	0	2	0	3.00
Century Communities	0	1	1	0	2.50

Cavco Industries presently has a consensus price target of $423.50, suggesting a potential upside of 9.47%. Century Communities has a consensus price target of $101.50, suggesting a potential upside of 9.97%. Given Century Communities’ higher possible upside, analysts clearly believe Century Communities is more favorable than Cavco Industries.

Volatility & Risk

Cavco Industries has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Century Communities has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cavco Industries and Century Communities’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cavco Industries	$1.80 billion	1.78	$157.82 million	$18.35	21.08
Century Communities	$4.08 billion	0.72	$259.22 million	$9.01	10.24

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

Profitability

This table compares Cavco Industries and Century Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cavco Industries	8.12%	14.30%	10.81%
Century Communities	7.90%	14.00%	8.10%

Institutional and Insider Ownership

95.6% of Cavco Industries shares are held by institutional investors. Comparatively, 99.5% of Century Communities shares are held by institutional investors. 1.6% of Cavco Industries shares are held by company insiders. Comparatively, 11.9% of Century Communities shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Cavco Industries beats Century Communities on 8 of the 14 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 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.