Sleep Number (NASDAQ:SNBR) versus Century Communities (NYSE:CCS) Financial Review

Century Communities (NYSE:CCS) and Sleep Number (NASDAQ:SNBR) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Volatility and Risk

Century Communities has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Sleep Number has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500.

Earnings & Valuation

This table compares Century Communities and Sleep Number”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Communities	$4.12 billion	0.40	$147.60 million	$4.56	12.73
Sleep Number	$1.34 billion	0.00	-$131.96 million	($7.56)	-0.02

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

Insider & Institutional Ownership

99.5% of Century Communities shares are held by institutional investors. Comparatively, 85.7% of Sleep Number shares are held by institutional investors. 13.7% of Century Communities shares are held by company insiders. Comparatively, 3.6% of Sleep Number 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.

Profitability

This table compares Century Communities and Sleep Number’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Century Communities	3.41%	6.06%	3.39%
Sleep Number	-12.98%	N/A	-16.48%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Century Communities and Sleep Number, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Century Communities	2	3	2	0	2.00
Sleep Number	2	2	0	0	1.50

Century Communities currently has a consensus price target of $67.00, indicating a potential upside of 15.46%. Sleep Number has a consensus price target of $3.50, indicating a potential upside of 2,700.00%. Given Sleep Number’s higher possible upside, analysts clearly believe Sleep Number is more favorable than Century Communities.

Summary

Century Communities beats Sleep Number on 12 of the 14 factors compared between the two stocks.

About Century Communities

Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its homebuyers. The company offers homes under the Century Communities and Century Complete brands. It sells homes through its sales representatives, retail studios, and internet, as well as through independent real estate brokers in 18 states in the United States. Century Communities, Inc. was founded in 2002 and is headquartered in Greenwood Village, Colorado.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.