Analyzing Beazer Homes USA (NYSE:BZH) & Sony (NYSE:SONY)

Sony (NYSE:SONY) and Beazer Homes USA (NYSE:BZH) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Valuation & Earnings

This table compares Sony and Beazer Homes USA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sony	$12,695.78 billion	0.01	-$2.16 billion	$1.12	20.51
Beazer Homes USA	$2.08 billion	0.43	$45.59 million	($0.30)	-111.22

Beazer Homes USA has lower revenue, but higher earnings than Sony. Beazer Homes USA is trading at a lower price-to-earnings ratio than Sony, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sony and Beazer Homes USA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sony	-2.00%	13.06%	5.22%
Beazer Homes USA	-0.37%	0.18%	0.08%

Analyst Recommendations

This is a summary of current recommendations and price targets for Sony and Beazer Homes USA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sony	1	1	4	1	2.71
Beazer Homes USA	1	2	0	1	2.25

Sony currently has a consensus price target of $22.00, indicating a potential downside of 4.24%. Given Sony’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sony is more favorable than Beazer Homes USA.

Risk & Volatility

Sony has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Beazer Homes USA has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500.

Insider and Institutional Ownership

14.1% of Sony shares are owned by institutional investors. Comparatively, 85.7% of Beazer Homes USA shares are owned by institutional investors. 7.0% of Sony shares are owned by insiders. Comparatively, 8.0% of Beazer Homes USA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Sony beats Beazer Homes USA on 8 of the 14 factors compared between the two stocks.

About Sony

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home gaming consoles, packaged and game software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operation of television networks and direct-to-consumer streaming services; operates a visual effects and animation unit; and manages a studio facility. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, as well as compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.

About Beazer Homes USA

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.