Cavco Industries (NASDAQ:CVCO) and Deer Valley (OTCMKTS:DVLY) are both small-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Valuation and Earnings
This table compares Cavco Industries and Deer Valley’s gross 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||1.72||$61.50 million||N/A||N/A|
|Deer Valley||$35.66 million||0.37||$1.96 million||N/A||N/A|
Insider & Institutional Ownership
90.3% of Cavco Industries shares are held by institutional investors. 8.5% of Cavco Industries shares are held by insiders. Comparatively, 81.6% of Deer Valley shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Cavco Industries and Deer Valley’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Cavco Industries and Deer Valley, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cavco Industries presently has a consensus target price of $170.00, indicating a potential upside of 3.31%. Given Cavco Industries’ higher probable upside, equities analysts clearly believe Cavco Industries is more favorable than Deer Valley.
Risk and Volatility
Cavco Industries has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Deer Valley has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.
Cavco Industries beats Deer Valley on 9 of the 10 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.
Deer Valley Company Profile
Deer Valley Corporation, through its subsidiaries, designs, manufactures, and sells factory built homes primarily in the southeastern and south central regions of the United States. It operates through Factory-Built Housing and Financial Services segments. The company offers HUD code homes and modular homes. It also provides dealer inventory-secured financing for its factory built homes. Deer Valley Corporation markets its products in approximately 14 states through a network of independent dealers, builders, developers, and government agencies. The company was formerly known as Cytation Corporation and changed its name to Deer Valley Corporation in July 2006. Deer Valley Corporation is based in Tampa, Florida. Deer Valley Corporation is a subsidiary of Peerless Systems Corp.
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