Critical Comparison: Beazer Homes USA (NYSE:BZH) vs. Crown Crafts (NASDAQ:CRWS)

Crown Crafts (NASDAQ:CRWS) and Beazer Homes USA (NYSE:BZH) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Crown Crafts	5.99%	12.79%	6.84%
Beazer Homes USA	-0.37%	0.18%	0.08%

Volatility and Risk

Crown Crafts has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Beazer Homes USA has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500.

Institutional & Insider Ownership

30.2% of Crown Crafts shares are held by institutional investors. Comparatively, 85.7% of Beazer Homes USA shares are held by institutional investors. 12.3% of Crown Crafts shares are held by insiders. Comparatively, 8.0% of Beazer Homes USA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Crown Crafts and Beazer Homes USA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crown Crafts	0	1	0	0	2.00
Beazer Homes USA	1	3	0	0	1.75

Valuation & Earnings

This table compares Crown Crafts and Beazer Homes USA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crown Crafts	$83.55 million	0.32	$1.84 million	$0.47	5.34
Beazer Homes USA	$2.08 billion	0.43	$45.59 million	($0.30)	-111.48

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

Summary

Crown Crafts beats Beazer Homes USA on 7 of the 12 factors compared between the two stocks.

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.

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.