Reviewing PulteGroup (NYSE:PHM) & Skyworth Group (OTCMKTS:SWDHF)

PulteGroup (NYSE:PHM) and Skyworth Group (OTCMKTS:SWDHF) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Profitability

This table compares PulteGroup and Skyworth Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PulteGroup	11.62%	15.21%	10.89%
Skyworth Group	N/A	N/A	N/A

Dividends

PulteGroup pays an annual dividend of $1.04 per share and has a dividend yield of 0.8%. Skyworth Group pays an annual dividend of $0.15 per share and has a dividend yield of 25.6%. PulteGroup pays out 10.6% of its earnings in the form of a dividend. Skyworth Group pays out 27.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PulteGroup has increased its dividend for 7 consecutive years.

Institutional & Insider Ownership

89.9% of PulteGroup shares are held by institutional investors. Comparatively, 23.1% of Skyworth Group shares are held by institutional investors. 0.7% of PulteGroup shares are held by company 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.

Analyst Ratings

This is a summary of current recommendations for PulteGroup and Skyworth Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PulteGroup	0	6	11	0	2.65
Skyworth Group	0	0	0	0	0.00

PulteGroup presently has a consensus price target of $143.14, indicating a potential upside of 10.96%. Given PulteGroup’s stronger consensus rating and higher possible upside, research analysts plainly believe PulteGroup is more favorable than Skyworth Group.

Valuation & Earnings

This table compares PulteGroup and Skyworth Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PulteGroup	$16.41 billion	1.47	$2.22 billion	$9.79	13.18
Skyworth Group	N/A	N/A	N/A	$0.54	1.08

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

Summary

PulteGroup beats Skyworth Group on 13 of the 14 factors compared between the two stocks.

About PulteGroup

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names. In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

About Skyworth Group

Skyworth Group Limited, an investment holding company, researches and develops, manufactures, sells, trades, and exports consumer electronic products. It operates through Smart Household Appliances Business, Smart Systems Technology Business, and New Energy Business segments. The company offers smart TV systems; home access systems, such as digital set-top boxes; smart white appliances, including air conditioners, refrigerators, washing machines, kitchen appliances, tablet computer, and other products; LCD modules; automotive electronic systems; photovoltaic products; lighting products; security systems; and other electronic products, as well as internet value-added services. It is also involved in the property development and holding; trading of consumer electronic products; and sale and installation of photovoltaic power station for residential and commercial uses, as well as financing and treasury management activities. In addition, the company engages in the maintenance and repair of home appliances; construction development business; financial leasing; and macro logistics services, as well as operates industrial parks. It has operations in the People's Republic of China, rest of Asia, Europe, the Middle East, the Americas, Oceania, and Africa. The company was formerly known as Skyworth Digital Holdings Limited and changed its name to Skyworth Group Limited in June 2019. Skyworth Group Limited was founded in 1988 and is headquartered in Quarry Bay, Hong Kong.