Cavco Industries (NASDAQ:CVCO) versus Man Wah (OTCMKTS:MAWHY) Financial Review

Man Wah (OTCMKTS:MAWHY) and Cavco Industries (NASDAQ:CVCO) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Man Wah and Cavco Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Man Wah	0	0	0	0	0.00
Cavco Industries	1	2	1	1	2.40

Cavco Industries has a consensus target price of $700.00, indicating a potential upside of 24.79%. Given Cavco Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Cavco Industries is more favorable than Man Wah.

Institutional & Insider Ownership

95.6% of Cavco Industries shares are owned by institutional investors. 1.7% of Cavco Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Man Wah has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Cavco Industries has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Valuation and Earnings

This table compares Man Wah and Cavco Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Man Wah	$2.11 billion	0.70	$232.17 million	N/A	N/A
Cavco Industries	$2.24 billion	1.92	$190.55 million	$22.98	24.41

Man Wah has higher earnings, but lower revenue than Cavco Industries.

Profitability

This table compares Man Wah and Cavco Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Man Wah	N/A	N/A	N/A
Cavco Industries	7.89%	16.51%	12.17%

Summary

Cavco Industries beats Man Wah on 12 of the 13 factors compared between the two stocks.

About Man Wah

Man Wah Holdings Limited, an investment holding company, engages in the manufacture, wholesale, trading, and distribution of sofas and ancillary products in the People's Republic of China, North America, Europe, and internationally. The company operates through Sofa and Ancillary Products, Other Products, Other Business, and Home Group Business segments. It offers mattresses, smart furniture spare parts, and metal mechanism for recliners. The company is also involved in the production and sale of chairs and other products to railways, cinema chains, airlines, yachts, private clubs and other commercial customers; advertising and marketing of home furnishing products; property investment business; operation, leasing, and management of furniture malls; manufacturing and trading of bedding products, other furniture, and furniture components, as well as foam products; and research and production of smart drive machines and electric regulators. In addition, it offers property management, development, and leasing services; offshore sales, business consultancy, and back-office support services; business management, advertising, and design services; and marketing, logistics, and warehousing services. The company also operates hotel; and sells residential properties. The company was founded in 1992 and is based in Fo Tan, Hong Kong. Man Wah Holdings Limited is a subsidiary of Man Wah Investments Limited.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.