Champion Homes (NYSE:SKY – Get Free Report) and Aterian (NASDAQ:ATER – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Volatility & Risk
Champion Homes has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Aterian has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.
Insider and Institutional Ownership
7.0% of Aterian shares are owned by institutional investors. 0.6% of Champion Homes shares are owned by insiders. Comparatively, 19.5% of Aterian shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Champion Homes and Aterian”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Champion Homes | $2.67 billion | 1.80 | $206.90 million | $3.43 | 25.84 |
| Aterian | $68.85 million | 0.12 | -$18.98 million | ($1.99) | -0.40 |
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.
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 | 7.16% | 12.52% | 9.29% |
| Aterian | -49.30% | -92.04% | -47.83% |
Analyst Ratings
This is a summary of recent recommendations for Champion Homes and Aterian, as provided by MarketBeat.
| 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 currently has a consensus target price of $102.75, suggesting a potential upside of 15.91%. Given Champion Homes’ stronger consensus rating and higher probable upside, research analysts plainly believe Champion Homes is more favorable than Aterian.
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.
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