Critical Survey: Champion Homes (SKY) & The Competition

Champion Homes (NYSE:SKY) is one of 149 public companies in the “Household Durables” industry, but how does it weigh in compared to its peers? We will compare Champion Homes to similar businesses based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

Champion Homes has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Champion Homes’ peers have a beta of 1.75, indicating that their average stock price is 75% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Champion Homes	7.16%	12.52%	9.29%
Champion Homes Competitors	-21.24%	-17.55%	1.13%

Earnings and Valuation

This table compares Champion Homes and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Champion Homes	$2.67 billion	$206.90 million	24.25
Champion Homes Competitors	$127.75 billion	$322.40 million	9.54

Champion Homes’ peers have higher revenue and earnings than Champion Homes. Champion Homes is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

53.7% of shares of all “Household Durables” companies are held by institutional investors. 0.6% of Champion Homes shares are held by company insiders. Comparatively, 18.5% of shares of all “Household Durables” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Champion Homes and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	2	5	1	2.88
Champion Homes Competitors	1750	7300	8071	306	2.40

Champion Homes currently has a consensus target price of $104.00, suggesting a potential upside of 25.05%. As a group, “Household Durables” companies have a potential upside of 55.88%. Given Champion Homes’ peers higher probable upside, analysts plainly believe Champion Homes has less favorable growth aspects than its peers.

Summary

Champion Homes beats its peers on 7 of the 13 factors compared.

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.