Financial Contrast: Cavco Industries (NASDAQ:CVCO) versus Century Communities (NYSE:CCS)

Century Communities (NYSE:CCS) and Cavco Industries (NASDAQ:CVCO) are both mid-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Valuation and Earnings

This table compares Century Communities and Cavco Industries’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Communities	$4.08 billion	0.75	$259.22 million	$9.01	10.69
Cavco Industries	$1.80 billion	1.85	$157.82 million	$18.35	21.93

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

Risk and Volatility

Century Communities has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Cavco Industries has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Century Communities and Cavco Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Communities	0	1	1	0	2.50
Cavco Industries	0	0	2	0	3.00

Century Communities currently has a consensus price target of $101.50, indicating a potential upside of 5.38%. Cavco Industries has a consensus price target of $423.50, indicating a potential upside of 5.23%. Given Century Communities’ higher probable upside, equities analysts plainly believe Century Communities is more favorable than Cavco Industries.

Institutional and Insider Ownership

99.5% of Century Communities shares are held by institutional investors. Comparatively, 95.6% of Cavco Industries shares are held by institutional investors. 11.9% of Century Communities shares are held by insiders. Comparatively, 1.6% of Cavco Industries shares are held 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 Century Communities and Cavco Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Century Communities	7.90%	14.00%	8.10%
Cavco Industries	8.12%	14.23%	10.75%

Summary

Cavco Industries beats Century Communities on 8 of the 14 factors compared between the two stocks.

About Century Communities

Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its homebuyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 18 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.