Sleep Number (NASDAQ:SNBR) versus Century Communities (NYSE:CCS) Head-To-Head Review

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

Risk & Volatility

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Century Communities	$4.12 billion	0.36	$147.60 million	$3.75	14.02
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.

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	2.86%	5.41%	3.01%
Sleep Number	-12.98%	N/A	-16.48%

Institutional & Insider Ownership

99.5% of Century Communities shares are owned by institutional investors. Comparatively, 85.7% of Sleep Number shares are owned by institutional investors. 13.7% of Century Communities shares are owned by insiders. Comparatively, 3.6% of Sleep Number shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Century Communities and Sleep Number, as provided 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 target price of $63.00, suggesting a potential upside of 19.86%. Sleep Number has a consensus target price of $3.50, suggesting a potential upside of 2,700.00%. Given Sleep Number’s higher probable 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.