Head-To-Head Analysis: Champion Homes (NYSE:SKY) and Sony (NYSE:SONY)

Sony (NYSE:SONY) and Champion Homes (NYSE:SKY) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Volatility and Risk

Sony has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Champion Homes has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Sony and Champion Homes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sony	1	4	12	0	2.65
Champion Homes	0	3	5	1	2.78

Sony presently has a consensus price target of $373.00, indicating a potential upside of 1,398.29%. Champion Homes has a consensus price target of $102.75, indicating a potential upside of 32.48%. Given Sony’s higher probable upside, equities analysts clearly believe Sony is more favorable than Champion Homes.

Valuation & Earnings

This table compares Sony and Champion Homes”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sony	$82.90 billion	1.77	-$2.16 billion	$1.12	22.23
Champion Homes	$2.66 billion	1.58	$206.90 million	$3.43	22.61

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

Institutional & Insider Ownership

14.1% of Sony shares are owned by institutional investors. 7.0% of Sony shares are owned by company insiders. Comparatively, 0.6% of Champion Homes 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sony	-2.00%	13.06%	5.22%
Champion Homes	7.16%	12.52%	9.29%

Summary

Champion Homes beats Sony on 8 of the 15 factors compared between the two stocks.

About Sony

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home gaming consoles, packaged and game software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operation of television networks and direct-to-consumer streaming services; operates a visual effects and animation unit; and manages a studio facility. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, as well as compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.

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.