Insider and Institutional Ownership
Lyon William Homes (NYSE: WLH) and Century Communities (NYSE:CCS) are both small-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
66.8% of Century Communities shares are owned by institutional investors. 21.3% of Lyon William Homes shares are owned by insiders. Comparatively, 23.2% of Century Communities shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Lyon William Homes and Century Communities’ revenue, earnings per share and valuation.
Lyon William Homes has higher revenue and earnings than Century Communities. Century Communities is trading at a lower price-to-earnings ratio than Lyon William Homes, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Lyon William Homes has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, Century Communities has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
This is a breakdown of current ratings for Lyon William Homes and Century Communities, as reported by MarketBeat.
Lyon William Homes currently has a consensus target price of $23.75, indicating a potential upside of 3.49%. Century Communities has a consensus target price of $26.67, indicating a potential upside of 2.37%. Given Lyon William Homes’ higher probable upside, equities research analysts clearly believe Lyon William Homes is more favorable than Century Communities.
This table compares Lyon William Homes and Century Communities’ net margins, return on equity and return on assets.
Century Communities beats Lyon William Homes on 9 of the 14 factors compared between the two stocks.
About Lyon William Homes
William Lyon Homes is primarily engaged in the design, construction and sale of single family detached and attached homes in California, Arizona and Nevada. The Company conducts its homebuilding operations through four reportable operating segments: Southern California, Northern California, Arizona and Nevada. For the three months ended March 31, 2012, 37% of home closings were derived from the Company’s California operations. The Company designs, constructs and sells a range of homes designed to meet the needs of each of its markets, although it primarily focuses sales to the entry-level and first time move-up home buyer markets. During the year ended December 31, 2011, the Company marketed its homes through 19 sales locations. In October 2013, the Company purchase 221 homesites at the master-planned Southshore community in Aurora, Colorado.