Comparing Smith Douglas Homes (NYSE:SDHC) and Champion Homes (NYSE:SKY)

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

Volatility and Risk

Champion Homes has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Smith Douglas Homes has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Champion Homes and Smith Douglas Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Champion Homes	7.16%	12.52%	9.29%
Smith Douglas Homes	0.64%	-0.19%	-0.14%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Champion Homes and Smith Douglas Homes, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	2	5	1	2.88
Smith Douglas Homes	2	7	1	0	1.90

Champion Homes presently has a consensus price target of $104.00, suggesting a potential upside of 18.40%. Smith Douglas Homes has a consensus price target of $13.90, suggesting a potential upside of 24.11%. Given Smith Douglas Homes’ higher possible upside, analysts plainly believe Smith Douglas Homes is more favorable than Champion Homes.

Earnings and Valuation

This table compares Champion Homes and Smith Douglas Homes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champion Homes	$2.67 billion	1.78	$206.90 million	$3.43	25.61
Smith Douglas Homes	$971.12 million	0.59	$10.69 million	$0.72	15.56

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.

Summary

Champion Homes beats Smith Douglas Homes on 12 of the 13 factors compared between the two stocks.

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.

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.