Reviewing Beazer Homes USA (NYSE:BZH) & Traeger (NYSE:COOK)

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

Insider and Institutional Ownership

46.8% of Traeger shares are owned by institutional investors. Comparatively, 85.7% of Beazer Homes USA shares are owned by institutional investors. 16.2% of Traeger shares are owned by insiders. Comparatively, 8.0% of Beazer Homes USA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Traeger and Beazer Homes USA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	1	5	1	0	2.00
Beazer Homes USA	1	3	0	0	1.75

Traeger presently has a consensus target price of $50.50, suggesting a potential upside of 14.12%. Given Traeger’s stronger consensus rating and higher probable upside, equities analysts clearly believe Traeger is more favorable than Beazer Homes USA.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Traeger	-23.23%	-13.76%	-3.59%
Beazer Homes USA	-0.37%	0.18%	0.08%

Earnings and Valuation

This table compares Traeger and Beazer Homes USA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$559.52 million	0.22	-$115.18 million	($42.04)	-1.05
Beazer Homes USA	$2.37 billion	0.38	$45.59 million	($0.30)	-111.52

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

Volatility & Risk

Traeger has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Beazer Homes USA has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500.

Summary

Beazer Homes USA beats Traeger on 9 of the 14 factors compared between the two stocks.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

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.