Comparing Beazer Homes USA (NYSE:BZH) and Dorel Industries (OTCMKTS:DIIBF)

Beazer Homes USA (NYSE:BZH) and Dorel Industries (OTCMKTS:DIIBF) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Earnings and Valuation

This table compares Beazer Homes USA and Dorel Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beazer Homes USA	$2.37 billion	0.37	$45.59 million	($0.30)	-110.75
Dorel Industries	$1.19 billion	0.03	-$142.22 million	($4.16)	-0.27

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

Institutional and Insider Ownership

85.7% of Beazer Homes USA shares are held by institutional investors. 8.0% of Beazer Homes USA shares are held by insiders. Comparatively, 19.3% of Dorel Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Beazer Homes USA has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Profitability

This table compares Beazer Homes USA and Dorel Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beazer Homes USA	-0.37%	0.18%	0.08%
Dorel Industries	-12.73%	N/A	-11.58%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Beazer Homes USA and Dorel Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beazer Homes USA	1	2	0	1	2.25
Dorel Industries	0	1	0	0	2.00

Summary

Beazer Homes USA beats Dorel Industries on 11 of the 13 factors compared between the two stocks.

About Beazer Homes USA

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.

About Dorel Industries

Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.