Head to Head Comparison: Crown Crafts (NASDAQ:CRWS) vs. Sekisui House (OTCMKTS:SKHSY)

Sekisui House (OTCMKTS:SKHSY) and Crown Crafts (NASDAQ:CRWS) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Risk and Volatility

Sekisui House has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Crown Crafts has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Sekisui House and Crown Crafts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sekisui House	6.15%	11.16%	4.87%
Crown Crafts	5.99%	12.79%	6.84%

Dividends

Sekisui House pays an annual dividend of $0.34 per share and has a dividend yield of 1.6%. Crown Crafts pays an annual dividend of $0.12 per share and has a dividend yield of 4.8%. Sekisui House pays out 13.5% of its earnings in the form of a dividend. Crown Crafts pays out 25.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Sekisui House and Crown Crafts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sekisui House	$28.07 billion	0.49	$1.56 billion	$2.52	8.37
Crown Crafts	$82.27 million	0.33	$1.84 million	$0.47	5.36

Sekisui House has higher revenue and earnings than Crown Crafts. Crown Crafts is trading at a lower price-to-earnings ratio than Sekisui House, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.0% of Sekisui House shares are owned by institutional investors. Comparatively, 30.2% of Crown Crafts shares are owned by institutional investors. 12.3% of Crown Crafts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Sekisui House and Crown Crafts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sekisui House	0	0	0	1	4.00
Crown Crafts	0	1	0	0	2.00

Summary

Sekisui House beats Crown Crafts on 9 of the 15 factors compared between the two stocks.

About Sekisui House

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. The company operates through Custom Detached Houses, Rental Housing, Architectural/Civil Engineering, Remodeling, Real Estate Management Fees, Houses For Sale, Condominiums, Urban Redevelopment, and Overseas segments. It also engages in contracting of design and construction of custom detached houses, rental housing, office building, commercial buildings, and other properties; construction of reinforced concrete rental housing and commercial buildings; contracting of design and construction of civil engineering works; remodeling and renovation of houses; subleasing, management, operation, and brokerage of real estate; sale of houses and residential land; and sales of condominiums. Sekisui House, Ltd. was incorporated in 1929 and is headquartered in Osaka, Japan.

About Crown Crafts

Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.