Analyzing Champion Homes (NYSE:SKY) and Aterian (NASDAQ:ATER)

Champion Homes (NYSE:SKY) and Aterian (NASDAQ:ATER) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

7.0% of Aterian shares are owned by institutional investors. 0.6% of Champion Homes shares are owned by company insiders. Comparatively, 19.5% of Aterian shares are owned 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.

Volatility & Risk

Champion Homes has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Aterian has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Champion Homes and Aterian, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Champion Homes	0	3	5	1	2.78
Aterian	1	0	0	0	1.00

Champion Homes presently has a consensus target price of $102.75, suggesting a potential upside of 8.89%. Given Champion Homes’ stronger consensus rating and higher possible upside, analysts clearly believe Champion Homes is more favorable than Aterian.

Profitability

This table compares Champion Homes and Aterian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Champion Homes	6.84%	12.17%	9.02%
Aterian	-49.30%	-92.04%	-47.83%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Champion Homes	$2.66 billion	1.92	$206.90 million	$3.43	27.51
Aterian	$68.97 million	0.11	-$18.98 million	($1.99)	-0.39

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

Summary

Champion Homes beats Aterian on 12 of the 15 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 Aterian

Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.