Sonos (NASDAQ:SONO) & Century Communities (NYSE:CCS) Head to Head Review

Century Communities (NYSE:CCS) and Sonos (NASDAQ:SONO) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Century Communities and Sonos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Century Communities	2.86%	5.41%	3.01%
Sonos	3.82%	19.10%	8.67%

Risk and Volatility

Century Communities has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Sonos has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Earnings and Valuation

This table compares Century Communities and Sonos”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Communities	$3.81 billion	0.40	$147.60 million	$3.75	14.40
Sonos	$1.44 billion	1.38	-$61.14 million	$0.45	37.53

Century Communities has higher revenue and earnings than Sonos. Century Communities is trading at a lower price-to-earnings ratio than Sonos, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Century Communities and Sonos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Communities	3	2	2	0	1.86
Sonos	0	2	2	0	2.50

Century Communities currently has a consensus price target of $63.00, indicating a potential upside of 16.63%. Sonos has a consensus price target of $20.00, indicating a potential upside of 18.41%. Given Sonos’ stronger consensus rating and higher probable upside, analysts plainly believe Sonos is more favorable than Century Communities.

Institutional and Insider Ownership

99.5% of Century Communities shares are held by institutional investors. Comparatively, 85.8% of Sonos shares are held by institutional investors. 13.7% of Century Communities shares are held by insiders. Comparatively, 1.3% of Sonos shares are held 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

Sonos beats Century Communities on 8 of the 13 factors compared between the two stocks.

About Century Communities

Century Communities, Inc. is a U.S. homebuilder that designs, constructs, markets and sells single-family homes and townhomes. The company offers homes at a range of price points and sells them through its Century Communities and Century Complete brands. Founded in 2002, the company operates in markets across the United States. Its related services include mortgage lending and title services, which support customers through the home-buying process. Co-founder Robert J. Francescon serves as the company’s chief executive officer.

About Sonos

Sonos, Inc. designs and sells wireless audio products and software for home entertainment. Its lineup includes wireless speakers, soundbars, subwoofers, amplifiers and related components that can be used individually or connected through the Sonos platform to play audio in multiple rooms. The company’s products support music and other audio from a range of streaming services, as well as television and home theater setups. Sonos also offers software and services, including Sonos Radio, and sells products through its website and retail partners in markets around the world.