Critical Analysis: Traeger (NYSE:COOK) versus Sekisui House (OTCMKTS:SKHSY)

Traeger (NYSE:COOK – Get Free Report) and Sekisui House (OTCMKTS:SKHSY – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Traeger and Sekisui House, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Traeger 1 5 1 0 2.00
Sekisui House 0 0 0 1 4.00

Traeger presently has a consensus price target of $50.50, suggesting a potential upside of 7.43%. Given Traeger’s higher probable upside, analysts clearly believe Traeger is more favorable than Sekisui House.

Valuation & Earnings

This table compares Traeger and Sekisui House”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Traeger $559.52 million 0.24 -$115.18 million ($42.04) -1.12
Sekisui House $28.07 billion 0.52 $1.56 billion $2.52 8.87

Sekisui House has higher revenue and earnings than Traeger. Traeger is trading at a lower price-to-earnings ratio than Sekisui House, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

46.8% of Traeger shares are owned by institutional investors. Comparatively, 0.0% of Sekisui House shares are owned by institutional investors. 16.2% of Traeger shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Traeger and Sekisui House’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Traeger -23.23% -13.76% -3.59%
Sekisui House 6.15% 11.16% 4.87%

Risk & Volatility

Traeger has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Sekisui House has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Summary

Sekisui House beats Traeger on 10 of the 15 factors compared between the two stocks.

About Traeger

(Get Free Report)

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

About Sekisui House

(Get Free Report)

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. The company operates through Custom Detached Houses, Rental Housing, Architectural/Civil Engineering, Remodeling, Real Estate Management Fees, Houses For Sale, Condominiums, Urban Redevelopment, and Overseas segments. It also engages in contracting of design and construction of custom detached houses, rental housing, office building, commercial buildings, and other properties; construction of reinforced concrete rental housing and commercial buildings; contracting of design and construction of civil engineering works; remodeling and renovation of houses; subleasing, management, operation, and brokerage of real estate; sale of houses and residential land; and sales of condominiums. Sekisui House, Ltd. was incorporated in 1929 and is headquartered in Osaka, Japan.

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