Reviewing Crown Crafts (NASDAQ:CRWS) & D.R. Horton (NYSE:DHI)

D.R. Horton (NYSE:DHI) and Crown Crafts (NASDAQ:CRWS) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for D.R. Horton and Crown Crafts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D.R. Horton	0	10	5	0	2.33
Crown Crafts	0	1	0	0	2.00

D.R. Horton presently has a consensus target price of $166.92, suggesting a potential upside of 17.36%. Given D.R. Horton’s stronger consensus rating and higher probable upside, analysts plainly believe D.R. Horton is more favorable than Crown Crafts.

Profitability

This table compares D.R. Horton and Crown Crafts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
D.R. Horton	9.15%	12.47%	8.59%
Crown Crafts	5.99%	12.79%	6.84%

Dividends

D.R. Horton pays an annual dividend of $1.80 per share and has a dividend yield of 1.3%. Crown Crafts pays an annual dividend of $0.12 per share and has a dividend yield of 4.4%. D.R. Horton pays out 17.1% of its earnings in the form of a dividend. Crown Crafts pays out 25.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. D.R. Horton has increased its dividend for 10 consecutive years.

Earnings and Valuation

This table compares D.R. Horton and Crown Crafts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D.R. Horton	$33.35 billion	1.19	$3.59 billion	$10.51	13.53
Crown Crafts	$83.55 million	0.35	$1.84 million	$0.47	5.81

D.R. Horton has higher revenue and earnings than Crown Crafts. Crown Crafts is trading at a lower price-to-earnings ratio than D.R. Horton, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

D.R. Horton has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Crown Crafts has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Institutional and Insider Ownership

90.6% of D.R. Horton shares are held by institutional investors. Comparatively, 30.2% of Crown Crafts shares are held by institutional investors. 0.7% of D.R. Horton shares are held by company insiders. Comparatively, 12.3% of Crown Crafts shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

D.R. Horton beats Crown Crafts on 14 of the 17 factors compared between the two stocks.

About D.R. Horton

D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.

About Crown Crafts

Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.