Contrasting Zepp Health (NYSE:ZEPP) & Beazer Homes USA (NYSE:BZH)

Beazer Homes USA (NYSE:BZH) and Zepp Health (NYSE:ZEPP) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

Beazer Homes USA has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.

Valuation and Earnings

This table compares Beazer Homes USA and Zepp Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beazer Homes USA	$2.37 billion	0.37	$45.59 million	($0.30)	-110.90
Zepp Health	$258.90 million	0.26	-$40.07 million	($2.75)	-1.67

Beazer Homes USA has higher revenue and earnings than Zepp Health. Beazer Homes USA is trading at a lower price-to-earnings ratio than Zepp Health, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Beazer Homes USA and Zepp Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beazer Homes USA	1	2	0	1	2.25
Zepp Health	1	0	1	0	2.00

Zepp Health has a consensus target price of $53.01, suggesting a potential upside of 1,051.14%. Given Zepp Health’s higher possible upside, analysts clearly believe Zepp Health is more favorable than Beazer Homes USA.

Profitability

This table compares Beazer Homes USA and Zepp Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beazer Homes USA	-0.37%	0.18%	0.08%
Zepp Health	-15.78%	-19.64%	-7.18%

Institutional & Insider Ownership

85.7% of Beazer Homes USA shares are owned by institutional investors. Comparatively, 52.6% of Zepp Health shares are owned by institutional investors. 8.0% of Beazer Homes USA shares are owned by insiders. Comparatively, 36.0% of Zepp Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Beazer Homes USA beats Zepp Health on 11 of the 15 factors compared between the two stocks.

About Beazer Homes USA

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.

About Zepp Health

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.