Cricut (NASDAQ:CRCT – Get Free Report) and Legacy Housing (NASDAQ:LEGH – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Insider and Institutional Ownership
19.6% of Cricut shares are owned by institutional investors. Comparatively, 89.3% of Legacy Housing shares are owned by institutional investors. 16.5% of Cricut shares are owned by company insiders. Comparatively, 30.1% of Legacy Housing shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Cricut has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cricut | 4 | 1 | 0 | 1 | 1.67 |
| Legacy Housing | 0 | 4 | 0 | 0 | 2.00 |
Cricut currently has a consensus price target of $4.07, suggesting a potential downside of 28.02%. Legacy Housing has a consensus price target of $21.00, suggesting a potential downside of 22.54%. Given Legacy Housing’s stronger consensus rating and higher probable upside, analysts plainly believe Legacy Housing is more favorable than Cricut.
Earnings & Valuation
This table compares Cricut and Legacy Housing”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cricut | $708.78 million | 1.67 | $76.71 million | $0.43 | 13.14 |
| Legacy Housing | $164.57 million | 3.92 | $41.81 million | $2.17 | 12.49 |
Cricut has higher revenue and earnings than Legacy Housing. Legacy Housing is trading at a lower price-to-earnings ratio than Cricut, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cricut and Legacy Housing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cricut | 12.71% | 24.57% | 15.42% |
| Legacy Housing | 28.56% | 9.53% | 8.74% |
Summary
Legacy Housing beats Cricut on 8 of the 14 factors compared between the two stocks.
About Cricut
Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.
About Legacy Housing
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.
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