Cavco Industries (NASDAQ:CVCO) and Nobility Homes (OTCMKTS:NOBH) are both small-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Risk & Volatility
Cavco Industries has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Nobility Homes has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500.
This table compares Cavco Industries and Nobility Homes’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Cavco Industries and Nobility Homes’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cavco Industries||$871.23 million||2.09||$61.50 million||N/A||N/A|
|Nobility Homes||$37.54 million||2.37||$3.30 million||N/A||N/A|
Cavco Industries has higher revenue and earnings than Nobility Homes.
This is a breakdown of recent ratings and target prices for Cavco Industries and Nobility Homes, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cavco Industries currently has a consensus target price of $230.00, suggesting a potential upside of 14.65%. Given Cavco Industries’ higher probable upside, research analysts clearly believe Cavco Industries is more favorable than Nobility Homes.
Insider & Institutional Ownership
90.9% of Cavco Industries shares are held by institutional investors. 8.5% of Cavco Industries shares are held by company insiders. Comparatively, 66.3% of Nobility Homes shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Nobility Homes pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Cavco Industries does not pay a dividend.
Cavco Industries beats Nobility Homes on 7 of the 11 factors compared between the two stocks.
Cavco Industries Company Profile
Cavco Industries, Inc. designs, produces, and retails manufactured homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its manufactured homes under the Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes, Friendship Homes, Chariot Eagle, and Lexington Home brands. It also builds park model RVs; vacation cabins; and systems-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces modular homes, such as single and multi-module ranch, split-level, and Cape Cod style homes, as well as two and three story homes and multi-family units primarily under the Nationwide Homes brand. Further, it provides conforming mortgages, non-conforming mortgages, and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail sales centers, as well as various independent retailers, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. As of March 31, 2018, it operated 39 retail centers in Oregon, Arizona, New Mexico, Texas, Oklahoma, and Florida, Texas. The company also distributes its homes through a network of independent distribution points in 47 states, as well as Canada and Japan; and through planned community operators and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.
Nobility Homes Company Profile
Nobility Homes, Inc., together with its subsidiaries, designs, manufactures, and sells various manufactured and modular homes in Florida. It markets its homes under the Kingswood, Richwood, Tropic Isle, Regency Manor, and Special Edition trade names. The company sells its manufactured homes through a network of its own retail sales centers; and on a wholesale basis to independent manufactured home retail dealers and manufactured home communities. In addition, it offers retail insurance services, which involve placing various types of insurance, such as property and casualty, automobile, and extended home warranty coverage with insurance underwriters on behalf of its customers in connection with their purchase and financing of manufactured homes, as well as operates as a licensed mortgage loan originator. As of November 5, 2016, the company operated 10 retail sales centers in Ocala, Chiefland, Auburndale, Inverness, Hudson, Tavares, Yulee, Panama City, and Punta Gorda. Nobility Homes, Inc. was founded in 1967 and is headquartered in Ocala, Florida.
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