Critical Comparison: PulteGroup (NYSE:PHM) & SharkNinja (NYSE:SN)

PulteGroup (NYSE:PHM) and SharkNinja (NYSE:SN) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for PulteGroup and SharkNinja, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PulteGroup	0	9	12	1	2.64
SharkNinja	0	0	12	0	3.00

PulteGroup currently has a consensus price target of $138.94, suggesting a potential upside of 25.12%. SharkNinja has a consensus price target of $188.59, suggesting a potential downside of 0.98%. Given PulteGroup’s higher probable upside, research analysts clearly believe PulteGroup is more favorable than SharkNinja.

Institutional & Insider Ownership

89.9% of PulteGroup shares are held by institutional investors. Comparatively, 34.8% of SharkNinja shares are held by institutional investors. 0.7% of PulteGroup shares are held by insiders. Comparatively, 40.8% of SharkNinja shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

PulteGroup has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, SharkNinja has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares PulteGroup and SharkNinja’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PulteGroup	11.62%	15.21%	10.89%
SharkNinja	10.06%	27.79%	14.19%

Earnings and Valuation

This table compares PulteGroup and SharkNinja”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PulteGroup	$17.31 billion	1.20	$2.22 billion	$9.79	11.34
SharkNinja	$6.40 billion	4.19	$701.37 million	$4.90	38.87

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

About PulteGroup

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names. In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

About SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.