Comparing Champion Homes (NYSE:SKY) and Patrick Industries (NASDAQ:PATK)

Champion Homes (NYSE:SKY) and Patrick Industries (NASDAQ:PATK) are both mid-cap construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Risk and Volatility

Champion Homes has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Patrick Industries has a beta of 2, indicating that its stock price is 100% more volatile than the S&P 500.

Earnings and Valuation

This table compares Champion Homes and Patrick Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champion Homes	$2.48 billion	1.40	$198.41 million	$3.42	17.69
Patrick Industries	$3.72 billion	0.80	$138.40 million	$4.17	21.35

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

Insider & Institutional Ownership

93.3% of Patrick Industries shares are held by institutional investors. 1.2% of Champion Homes shares are held by insiders. Comparatively, 4.7% of Patrick Industries shares are held 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.

Profitability

This table compares Champion Homes and Patrick Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Champion Homes	7.99%	13.61%	10.03%
Patrick Industries	3.74%	12.90%	4.71%

Analyst Ratings

This is a summary of recent recommendations for Champion Homes and Patrick Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	5	1	0	2.17
Patrick Industries	0	3	6	0	2.67

Champion Homes currently has a consensus price target of $80.60, indicating a potential upside of 33.22%. Patrick Industries has a consensus price target of $96.42, indicating a potential upside of 8.29%. Given Champion Homes’ higher probable upside, analysts clearly believe Champion Homes is more favorable than Patrick Industries.

Summary

Patrick Industries beats Champion Homes on 8 of the 14 factors compared between the two stocks.

About Champion Homes

Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada. The company also provides construction services to install and set-up factory-built homes; operates a factory-direct manufactured home retail business under the Titan Factory Direct and Champion Homes Center brand names with 31 sales centers in the United States; and engages in the transportation of manufactured homes and recreational vehicles. The company was founded in 2010 and is headquartered in Troy, Michigan.

About Patrick Industries

Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.