Head to Head Analysis: Cricut (NASDAQ:CRCT) and Champion Homes (NYSE:SKY)

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

Volatility & Risk

Champion Homes has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Cricut has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Champion Homes and Cricut, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	3	5	1	2.78
Cricut	4	1	0	1	1.67

Champion Homes presently has a consensus price target of $104.00, indicating a potential upside of 20.50%. Cricut has a consensus price target of $4.07, indicating a potential downside of 37.24%. Given Champion Homes’ stronger consensus rating and higher possible upside, equities analysts plainly believe Champion Homes is more favorable than Cricut.

Earnings and Valuation

This table compares Champion Homes and Cricut”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champion Homes	$2.66 billion	1.76	$206.90 million	$3.43	25.16
Cricut	$708.78 million	1.91	$76.71 million	$0.43	15.07

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

Profitability

This table compares Champion Homes and Cricut’s 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%
Cricut	12.71%	24.57%	15.42%

Institutional & Insider Ownership

19.6% of Cricut shares are owned by institutional investors. 0.6% of Champion Homes shares are owned by insiders. Comparatively, 16.5% of Cricut shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Champion Homes beats Cricut on 8 of the 14 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 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.