Smith Douglas Homes (NYSE:SDHC – Get Free Report) and Champion Homes (NYSE:SKY – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
Profitability
This table compares Smith Douglas Homes and Champion Homes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smith Douglas Homes | 0.64% | -0.19% | -0.14% |
| Champion Homes | 7.16% | 12.52% | 9.29% |
Valuation & Earnings
This table compares Smith Douglas Homes and Champion Homes”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smith Douglas Homes | $971.12 million | 0.56 | $10.69 million | $0.72 | 14.76 |
| Champion Homes | $2.67 billion | 1.69 | $206.90 million | $3.43 | 24.25 |
Champion Homes has higher revenue and earnings than Smith Douglas Homes. Smith Douglas Homes is trading at a lower price-to-earnings ratio than Champion Homes, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Smith Douglas Homes has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Champion Homes has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Smith Douglas Homes and Champion Homes, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith Douglas Homes | 2 | 7 | 1 | 0 | 1.90 |
| Champion Homes | 0 | 2 | 5 | 1 | 2.88 |
Smith Douglas Homes currently has a consensus target price of $13.90, indicating a potential upside of 30.76%. Champion Homes has a consensus target price of $104.00, indicating a potential upside of 25.05%. Given Smith Douglas Homes’ higher probable upside, research analysts plainly believe Smith Douglas Homes is more favorable than Champion Homes.
Summary
Champion Homes beats Smith Douglas Homes on 12 of the 13 factors compared between the two stocks.
About Smith Douglas Homes
Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.
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.
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