Wisdom Homes of America (OTCMKTS:WOFA) and Lowe’s Companies (NYSE:LOW) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Profitability

This table compares Wisdom Homes of America and Lowe’s Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wisdom Homes of America N/A N/A N/A
Lowe’s Companies 5.19% 72.47% 11.21%

Risk & Volatility

Wisdom Homes of America has a beta of 2.8, indicating that its share price is 180% more volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Valuation & Earnings

This table compares Wisdom Homes of America and Lowe’s Companies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wisdom Homes of America N/A N/A N/A N/A N/A
Lowe’s Companies $68.62 billion 1.05 $3.45 billion $4.39 20.36

Lowe’s Companies has higher revenue and earnings than Wisdom Homes of America.

Institutional & Insider Ownership

73.9% of Lowe’s Companies shares are owned by institutional investors. 33.3% of Wisdom Homes of America shares are owned by company insiders. Comparatively, 0.3% of Lowe’s Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Wisdom Homes of America and Lowe’s Companies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wisdom Homes of America 0 0 0 0 N/A
Lowe’s Companies 0 8 22 0 2.73

Lowe’s Companies has a consensus price target of $109.40, suggesting a potential upside of 22.34%. Given Lowe’s Companies’ higher possible upside, analysts plainly believe Lowe’s Companies is more favorable than Wisdom Homes of America.

Dividends

Lowe’s Companies pays an annual dividend of $1.92 per share and has a dividend yield of 2.1%. Wisdom Homes of America does not pay a dividend. Lowe’s Companies pays out 43.7% of its earnings in the form of a dividend. Lowe’s Companies has raised its dividend for 55 consecutive years.

Summary

Lowe’s Companies beats Wisdom Homes of America on 9 of the 12 factors compared between the two stocks.

Wisdom Homes of America Company Profile

Wisdom Homes of America, Inc. engages in opening and operating manufactured home retail centers for homebuyers in Texas. The company was formerly known as SearchCore, Inc. and changed its name to Wisdom Homes of America, Inc. in March 2015. Wisdom Homes of America, Inc. was founded in 2003 and is headquartered in Tyler, Texas.

Lowe’s Companies Company Profile

Lowe’s Cos., Inc. engages in the retail sale of home improvement products. It offers products for maintenance, repair, remodeling, home decorating, and property maintenance. It also provides home improvement products in the following categories: appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lighting & fans, outdoor living, windows, and doors. The company was founded in 1946 and is headquartered in Mooresville, NC.

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