La-Z-Boy (NYSE:LZB) & Champion Homes (NYSE:SKY) Head-To-Head Survey

Champion Homes (NYSE:SKY) and La-Z-Boy (NYSE:LZB) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Earnings and Valuation

This table compares Champion Homes and La-Z-Boy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champion Homes	$2.66 billion	1.73	$206.90 million	$3.43	24.78
La-Z-Boy	$2.13 billion	0.57	$101.99 million	$1.97	15.45

Champion Homes has higher revenue and earnings than La-Z-Boy. La-Z-Boy is trading at a lower price-to-earnings ratio than Champion Homes, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Champion Homes and La-Z-Boy’s 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%
La-Z-Boy	3.86%	11.79%	6.12%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Champion Homes and La-Z-Boy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	3	5	1	2.78
La-Z-Boy	0	2	3	0	2.60

Champion Homes currently has a consensus price target of $102.75, suggesting a potential upside of 20.90%. La-Z-Boy has a consensus price target of $39.50, suggesting a potential upside of 29.81%. Given La-Z-Boy’s higher probable upside, analysts plainly believe La-Z-Boy is more favorable than Champion Homes.

Institutional & Insider Ownership

99.6% of La-Z-Boy shares are held by institutional investors. 0.6% of Champion Homes shares are held by company insiders. Comparatively, 3.1% of La-Z-Boy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Champion Homes has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Summary

Champion Homes beats La-Z-Boy on 11 of the 15 factors compared between the two stocks.

About Champion Homes

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.

About La-Z-Boy

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures, and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, entertainment centers, and occasional pieces. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. The company also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is headquartered in Monroe, Michigan.