Critical Survey: Cavco Industries (CVCO) & Its Rivals

Cavco Industries (NASDAQ:CVCO) is one of 150 publicly-traded companies in the “Household Durables” industry, but how does it contrast to its rivals? We will compare Cavco Industries to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Insider & Institutional Ownership

95.6% of Cavco Industries shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 1.7% of Cavco Industries shares are owned by insiders. Comparatively, 18.3% of shares of all “Household Durables” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Cavco Industries has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Cavco Industries’ rivals have a beta of 1.77, indicating that their average share price is 77% more volatile than the S&P 500.

Profitability

This table compares Cavco Industries and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cavco Industries	7.68%	16.60%	12.05%
Cavco Industries Competitors	-2.57%	-17.04%	1.23%

Analyst Recommendations

This is a summary of recent ratings and price targets for Cavco Industries and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cavco Industries	0	2	4	1	2.86
Cavco Industries Competitors	1811	7438	8164	316	2.39

Cavco Industries currently has a consensus target price of $695.00, suggesting a potential upside of 7.92%. As a group, “Household Durables” companies have a potential upside of 40.46%. Given Cavco Industries’ rivals higher possible upside, analysts clearly believe Cavco Industries has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Cavco Industries and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cavco Industries	$2.24 billion	$190.55 million	27.29
Cavco Industries Competitors	$130.89 billion	$313.99 million	9.46

Cavco Industries’ rivals have higher revenue and earnings than Cavco Industries. Cavco Industries is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Cavco Industries beats its rivals on 8 of the 13 factors compared.

Cavco Industries Company Profile

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.