D.R. Horton (NYSE:DHI – Get Free Report) and Crown Crafts (NASDAQ:CRWS – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Analyst Recommendations
This is a summary of recent recommendations for D.R. Horton and Crown Crafts, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| D.R. Horton | 0 | 10 | 5 | 0 | 2.33 |
| Crown Crafts | 0 | 1 | 0 | 0 | 2.00 |
D.R. Horton currently has a consensus price target of $166.92, indicating a potential upside of 16.88%. Given D.R. Horton’s stronger consensus rating and higher probable upside, equities research analysts plainly believe D.R. Horton is more favorable than Crown Crafts.
Volatility and Risk
Valuation & Earnings
This table compares D.R. Horton and Crown Crafts”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| D.R. Horton | $34.25 billion | 1.17 | $3.59 billion | $10.51 | 13.59 |
| Crown Crafts | $82.27 million | 0.36 | $1.84 million | $0.47 | 5.79 |
D.R. Horton has higher revenue and earnings than Crown Crafts. Crown Crafts is trading at a lower price-to-earnings ratio than D.R. Horton, indicating that it is currently the more affordable of the two stocks.
Dividends
D.R. Horton pays an annual dividend of $1.80 per share and has a dividend yield of 1.3%. Crown Crafts pays an annual dividend of $0.32 per share and has a dividend yield of 11.8%. D.R. Horton pays out 17.1% of its earnings in the form of a dividend. Crown Crafts pays out 68.1% 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. D.R. Horton has increased its dividend for 10 consecutive years.
Profitability
This table compares D.R. Horton and Crown Crafts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| D.R. Horton | 9.15% | 12.47% | 8.59% |
| Crown Crafts | 5.99% | 12.79% | 6.84% |
Insider and Institutional Ownership
90.6% of D.R. Horton shares are owned by institutional investors. Comparatively, 30.2% of Crown Crafts shares are owned by institutional investors. 0.7% of D.R. Horton shares are owned by company insiders. Comparatively, 12.3% of Crown Crafts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
D.R. Horton beats Crown Crafts on 14 of the 17 factors compared between the two stocks.
About D.R. Horton
D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.
About Crown Crafts
Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.
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