Century Communities (NYSE: CCS) and Comstock Holding Companies (NASDAQ:CHCI) are both small-cap construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

59.8% of Century Communities shares are owned by institutional investors. Comparatively, 9.9% of Comstock Holding Companies shares are owned by institutional investors. 23.2% of Century Communities shares are owned by company insiders. Comparatively, 46.4% of Comstock Holding Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Century Communities and Comstock Holding Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Century Communities 4.87% 10.74% 4.69%
Comstock Holding Companies -13.37% -92.61% -7.17%

Volatility & Risk

Century Communities has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Comstock Holding Companies has a beta of -0.37, suggesting that its stock price is 137% less volatile than the S&P 500.

Earnings and Valuation

This table compares Century Communities and Comstock Holding Companies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Century Communities $1.07 billion 0.53 $78.25 million $2.40 10.50
Comstock Holding Companies $42.68 million 0.13 -$3.18 million ($1.47) -1.09

Century Communities has higher revenue and earnings than Comstock Holding Companies. Comstock Holding Companies is trading at a lower price-to-earnings ratio than Century Communities, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Century Communities and Comstock Holding Companies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Century Communities 0 0 4 0 3.00
Comstock Holding Companies 0 0 0 0 N/A

Century Communities presently has a consensus price target of $30.50, suggesting a potential upside of 21.03%. Given Century Communities’ higher possible upside, equities analysts clearly believe Century Communities is more favorable than Comstock Holding Companies.

Summary

Century Communities beats Comstock Holding Companies on 11 of the 12 factors compared between the two stocks.

About Century Communities

Century Communities, Inc. engages in homebuilding business in Atlanta, Central Texas, Colorado, Houston, Nevada, and Utah. It is involved in the development, design, construction, marketing, and sale of single-family attached and detached homes, as well as entitlement and development of land. The company sells homes through its sales representatives, as well as through independent real estate brokers. Century Communities, Inc. was founded in 2000 and is headquartered in Greenwood Village, Colorado.

About Comstock Holding Companies

Comstock Holding Companies, Inc. (Comstock ), formerly Comstock Homebuilding Companies, Inc. is a diversified real estate development and services company focused on the Washington, D.C. metropolitan area. The Company builds a range of products including apartments, single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums and mixed-use (residential and commercial) developments. As of December 31, 2011, the Company had built and delivered more than 5,300 homes. The Company has built homes and apartment buildings in suburban communities, where it focuses on low density products. The Company’s apartment buildings are developed as rental properties to be held and operated for its own purposes, converted at some point to for-sale condominium units or sold on a merchant build basis. In March 7, 2012, Cascades II completed the sale of its Potomac Square Apartment project to an affiliate of CAPREIT Acquisition Corporation.

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