Aterian (NASDAQ:ATER – Get Free Report) and Cavco Industries (NASDAQ:CVCO – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Aterian and Cavco Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aterian | 1 | 0 | 0 | 0 | 1.00 |
| Cavco Industries | 1 | 2 | 1 | 1 | 2.40 |
Cavco Industries has a consensus target price of $700.00, suggesting a potential upside of 23.63%. Given Cavco Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Cavco Industries is more favorable than Aterian.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aterian | $68.97 million | 0.10 | -$18.98 million | ($1.99) | -0.31 |
| Cavco Industries | $2.24 billion | 1.94 | $190.55 million | $22.98 | 24.64 |
Cavco Industries has higher revenue and earnings than Aterian. Aterian is trading at a lower price-to-earnings ratio than Cavco Industries, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
7.0% of Aterian shares are owned by institutional investors. Comparatively, 95.6% of Cavco Industries shares are owned by institutional investors. 19.5% of Aterian shares are owned by insiders. Comparatively, 1.7% of Cavco Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Aterian and Cavco Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aterian | -49.30% | -92.04% | -47.83% |
| Cavco Industries | 7.89% | 16.51% | 12.17% |
Risk & Volatility
Aterian has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Cavco Industries has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Summary
Cavco Industries beats Aterian on 14 of the 15 factors compared between the two stocks.
About Aterian
Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.
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.
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