Financial Review: Champion Homes (SKY) and 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 peers? We will compare Champion Homes to related companies based on the strength of its risk, analyst recommendations, institutional ownership, valuation, profitability, dividends and earnings.

Institutional & 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, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Champion Homes and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	2	5	1	2.88
Champion Homes Competitors	1751	7300	8073	306	2.40

Champion Homes currently has a consensus target price of $104.00, indicating a potential upside of 25.54%. As a group, “Household Durables” companies have a potential upside of 56.02%. Given Champion Homes’ peers higher possible upside, analysts clearly believe Champion Homes has less favorable growth aspects than its peers.

Risk and Volatility

Champion Homes has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Champion Homes’ peers have a beta of 1.75, indicating that their average share price is 75% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Champion Homes	$2.67 billion	$206.90 million	24.15
Champion Homes Competitors	$127.74 billion	$322.40 million	9.53

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

Profitability

This table compares Champion Homes and its peers’ 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	-21.25%	-17.56%	1.15%

Summary

Champion Homes beats its peers 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.