Analyzing Taylor Wimpey (OTCMKTS:TWODY) & Cricut (NASDAQ:CRCT)

Cricut (NASDAQ:CRCT) and Taylor Wimpey (OTCMKTS:TWODY) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Risk and Volatility

Cricut has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Taylor Wimpey has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cricut and Taylor Wimpey”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cricut	$708.78 million	1.77	$76.71 million	$0.43	13.88
Taylor Wimpey	$4.37 billion	0.91	$433.99 million	N/A	N/A

Taylor Wimpey has higher revenue and earnings than Cricut.

Profitability

This table compares Cricut and Taylor Wimpey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cricut	12.71%	24.57%	15.42%
Taylor Wimpey	N/A	N/A	N/A

Institutional & Insider Ownership

19.6% of Cricut shares are held by institutional investors. 16.5% of Cricut shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cricut and Taylor Wimpey, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cricut	4	1	0	1	1.67
Taylor Wimpey	2	1	1	0	1.75

Cricut presently has a consensus target price of $3.82, indicating a potential downside of 36.07%. Given Cricut’s higher probable upside, analysts clearly believe Cricut is more favorable than Taylor Wimpey.

Dividends

Cricut pays an annual dividend of $0.20 per share and has a dividend yield of 3.4%. Taylor Wimpey pays an annual dividend of $0.65 per share and has a dividend yield of 5.7%. Cricut pays out 46.5% of its earnings in the form of a dividend.

Summary

Cricut beats Taylor Wimpey on 8 of the 15 factors compared between the two stocks.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

About Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.