Sonos (NASDAQ:SONO – Get Free Report) and Century Communities (NYSE:CCS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
85.8% of Sonos shares are held by institutional investors. Comparatively, 99.5% of Century Communities shares are held by institutional investors. 1.3% of Sonos shares are held by insiders. Comparatively, 13.7% of Century Communities shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Sonos and Century Communities”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonos | $1.49 billion | 1.29 | -$61.14 million | $0.45 | 36.12 |
| Century Communities | $4.12 billion | 0.38 | $147.60 million | $3.75 | 14.82 |
Century Communities has higher revenue and earnings than Sonos. Century Communities is trading at a lower price-to-earnings ratio than Sonos, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Sonos and Century Communities, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonos | 0 | 2 | 2 | 0 | 2.50 |
| Century Communities | 3 | 2 | 2 | 0 | 1.86 |
Sonos currently has a consensus price target of $20.00, suggesting a potential upside of 23.04%. Century Communities has a consensus price target of $63.00, suggesting a potential upside of 13.37%. Given Sonos’ stronger consensus rating and higher possible upside, research analysts clearly believe Sonos is more favorable than Century Communities.
Profitability
This table compares Sonos and Century Communities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonos | 3.82% | 19.10% | 8.67% |
| Century Communities | 2.86% | 5.41% | 3.01% |
Risk and Volatility
Sonos has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, Century Communities has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.
Summary
Sonos beats Century Communities on 8 of the 13 factors compared between the two stocks.
About Sonos
Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California.
About Century Communities
Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its homebuyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 18 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.
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