Champion Homes (NYSE:SKY) versus Sleep Number (NASDAQ:SNBR) Financial Review

Sleep Number (NASDAQ:SNBR) and Champion Homes (NYSE:SKY) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Risk and Volatility

Sleep Number has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500. Comparatively, Champion Homes has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

85.7% of Sleep Number shares are held by institutional investors. 3.6% of Sleep Number shares are held by company insiders. Comparatively, 0.6% of Champion Homes shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Sleep Number and Champion Homes”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sleep Number	$1.34 billion	0.00	-$131.96 million	($7.56)	-0.02
Champion Homes	$2.67 billion	1.74	$206.90 million	$3.43	24.93

Champion Homes has higher revenue and earnings than Sleep Number. Sleep Number is trading at a lower price-to-earnings ratio than Champion Homes, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Sleep Number and Champion Homes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sleep Number	2	2	0	0	1.50
Champion Homes	0	2	5	1	2.88

Sleep Number currently has a consensus price target of $3.50, indicating a potential upside of 2,700.00%. Champion Homes has a consensus price target of $104.00, indicating a potential upside of 21.64%. Given Sleep Number’s higher possible upside, equities analysts plainly believe Sleep Number is more favorable than Champion Homes.

Profitability

This table compares Sleep Number and Champion Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sleep Number	-12.98%	N/A	-16.48%
Champion Homes	7.16%	12.52%	9.29%

Summary

Champion Homes beats Sleep Number on 11 of the 15 factors compared between the two stocks.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

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.