Head to Head Comparison: Cavco Industries (NASDAQ:CVCO) & Barratt Developments (OTCMKTS:BTDPF)

Barratt Developments (OTCMKTS:BTDPF) and Cavco Industries (NASDAQ:CVCO) are both consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

46.4% of Barratt Developments shares are owned by institutional investors. Comparatively, 95.6% of Cavco Industries shares are owned by institutional investors. 1.6% of Cavco Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Barratt Developments and Cavco Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barratt Developments	0	0	0	0	N/A
Cavco Industries	0	0	2	0	3.00

Cavco Industries has a consensus price target of $423.50, indicating a potential upside of 6.12%. Given Cavco Industries’ higher possible upside, analysts plainly believe Cavco Industries is more favorable than Barratt Developments.

Valuation and Earnings

This table compares Barratt Developments and Cavco Industries’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barratt Developments	N/A	N/A	N/A	$0.30	21.46
Cavco Industries	$1.80 billion	1.84	$157.82 million	$18.35	21.75

Cavco Industries has higher revenue and earnings than Barratt Developments. Barratt Developments is trading at a lower price-to-earnings ratio than Cavco Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Barratt Developments and Cavco Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Barratt Developments	N/A	N/A	N/A
Cavco Industries	8.12%	14.23%	10.75%

Summary

Cavco Industries beats Barratt Developments on 10 of the 10 factors compared between the two stocks.

About Barratt Developments

Barratt Developments plc engages in the housebuilding business in the United Kingdom. The company acquires and develops land; plans, designs, and constructs homes, apartments, penthouses, and communities, as well as undertakes mixed-use regeneration schemes; and develops retail, leisure, office, industrial, and mixed-use properties. It is also involved in the commercial development business under the Wilson Bowden Developments brand name. The company offers its homes under the Barratt Homes, David Wilson Homes, and Barratt London brands. The company was incorporated in 1958 and is headquartered in Coalville, the United Kingdom.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.