Financial Analysis: Champion Homes (SKY) & Its Competitors

Champion Homes (NYSE:SKY) is one of 149 public companies in the “Household Durables” industry, but how does it contrast to its competitors? We will compare Champion Homes to similar companies based on the strength of its profitability, dividends, earnings, institutional ownership, risk, analyst recommendations and valuation.

Risk and 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’ competitors have a beta of 1.74, meaning that their average share price is 74% more volatile than the S&P 500.

Profitability

This table compares Champion Homes and its competitors’ 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	-21.22%	-17.51%	1.14%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Champion Homes and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	2	5	1	2.88
Champion Homes Competitors	1736	7280	8058	303	2.40

Champion Homes presently has a consensus target price of $104.00, indicating a potential upside of 15.26%. As a group, “Household Durables” companies have a potential upside of 46.52%. Given Champion Homes’ competitors higher probable upside, analysts clearly believe Champion Homes has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Champion Homes and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Champion Homes	$2.66 billion	$206.90 million	26.31
Champion Homes Competitors	$5.26 billion	$319.31 million	14.34

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

Insider & Institutional Ownership

53.7% of shares of all “Household Durables” companies are owned by institutional investors. 0.6% of Champion Homes shares are owned by insiders. Comparatively, 18.5% of shares of all “Household Durables” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.