Head-To-Head Analysis: 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 rivals? We will compare Champion Homes to similar businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

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 insiders. Comparatively, 18.5% of shares of all “Household Durables” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Champion Homes and its rivals’ 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	-21.23%	-17.53%	1.13%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Champion Homes and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	2	5	1	2.88
Champion Homes Competitors	1737	7289	8064	303	2.40

Champion Homes currently has a consensus target price of $104.00, indicating a potential upside of 18.40%. As a group, “Household Durables” companies have a potential upside of 50.01%. Given Champion Homes’ rivals higher probable upside, analysts clearly believe Champion Homes has less favorable growth aspects than its rivals.

Risk & Volatility

Champion Homes has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Champion Homes’ rivals have a beta of 1.74, meaning that their average share price is 74% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Champion Homes	$2.66 billion	$206.90 million	25.61
Champion Homes Competitors	$5.30 billion	$322.40 million	10.10

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

Summary

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

Champion Homes Company Profile

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.