Critical Analysis: Comstock Holding Companies (CHCI) and Century Communities (CCS)
Comstock Holding Companies (NASDAQ: CHCI) and Century Communities (NYSE:CCS) are both small-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
This is a breakdown of recent ratings and price targets for Comstock Holding Companies and Century Communities, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comstock Holding Companies||0||0||0||0||N/A|
Century Communities has a consensus target price of $29.75, indicating a potential upside of 22.93%. Given Century Communities’ higher probable upside, analysts clearly believe Century Communities is more favorable than Comstock Holding Companies.
This table compares Comstock Holding Companies and Century Communities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Comstock Holding Companies||-13.37%||-92.61%||-7.17%|
Earnings & Valuation
This table compares Comstock Holding Companies and Century Communities’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Comstock Holding Companies||$42.68 million||0.15||-$3.18 million||($1.47)||-1.30|
|Century Communities||$1.07 billion||0.51||$78.25 million||$2.40||10.08|
Century Communities has higher revenue and earnings than Comstock Holding Companies. Comstock Holding Companies is trading at a lower price-to-earnings ratio than Century Communities, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
9.9% of Comstock Holding Companies shares are held by institutional investors. Comparatively, 59.8% of Century Communities shares are held by institutional investors. 46.4% of Comstock Holding Companies shares are held by insiders. Comparatively, 23.2% of Century Communities shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Comstock Holding Companies has a beta of -0.31, suggesting that its stock price is 131% less volatile than the S&P 500. Comparatively, Century Communities has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
Century Communities beats Comstock Holding Companies on 11 of the 12 factors compared between the two stocks.
About Comstock Holding Companies
Comstock Holding Companies, Inc. (Comstock ), formerly Comstock Homebuilding Companies, Inc. is a diversified real estate development and services company focused on the Washington, D.C. metropolitan area. The Company builds a range of products including apartments, single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums and mixed-use (residential and commercial) developments. As of December 31, 2011, the Company had built and delivered more than 5,300 homes. The Company has built homes and apartment buildings in suburban communities, where it focuses on low density products. The Company’s apartment buildings are developed as rental properties to be held and operated for its own purposes, converted at some point to for-sale condominium units or sold on a merchant build basis. In March 7, 2012, Cascades II completed the sale of its Potomac Square Apartment project to an affiliate of CAPREIT Acquisition Corporation.
About Century Communities
Century Communities, Inc. engages in homebuilding business in Atlanta, Central Texas, Colorado, Houston, Nevada, and Utah. It is involved in the development, design, construction, marketing, and sale of single-family attached and detached homes, as well as entitlement and development of land. The company sells homes through its sales representatives, as well as through independent real estate brokers. Century Communities, Inc. was founded in 2000 and is headquartered in Greenwood Village, Colorado.
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