Beazer Homes USA (NYSE:BZH) vs. Cavco Industries (NASDAQ:CVCO) Head to Head Review

Cavco Industries (NASDAQ:CVCO) and Beazer Homes USA (NYSE:BZH) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Insider & Institutional Ownership

95.6% of Cavco Industries shares are owned by institutional investors. Comparatively, 85.7% of Beazer Homes USA shares are owned by institutional investors. 1.7% of Cavco Industries shares are owned by company insiders. Comparatively, 8.0% of Beazer Homes USA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cavco Industries	7.89%	16.51%	12.17%
Beazer Homes USA	-0.37%	0.18%	0.08%

Analyst Recommendations

This is a breakdown of recent ratings for Cavco Industries and Beazer Homes USA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cavco Industries	1	2	1	1	2.40
Beazer Homes USA	1	2	0	1	2.25

Cavco Industries currently has a consensus price target of $700.00, indicating a potential upside of 31.82%. Given Cavco Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe Cavco Industries is more favorable than Beazer Homes USA.

Risk and Volatility

Cavco Industries has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Beazer Homes USA has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cavco Industries and Beazer Homes USA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cavco Industries	$2.30 billion	1.78	$190.55 million	$22.98	23.11
Beazer Homes USA	$2.37 billion	0.38	$45.59 million	($0.30)	-111.18

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

Summary

Cavco Industries beats Beazer Homes USA on 11 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 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.