Comparing Century Communities (CCS) and AV Homes (AVHI)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Century Communities and AV Homes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Century Communities 0 1 6 0 2.86
AV Homes 0 1 0 0 2.00

Century Communities currently has a consensus target price of $36.92, indicating a potential upside of 17.01%. Given Century Communities’ stronger consensus rating and higher possible upside, equities analysts clearly believe Century Communities is more favorable than AV Homes.

Profitability

This table compares Century Communities and AV Homes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Century Communities 3.87% 12.68% 5.19%
AV Homes -3.18% 1.73% 0.72%

Volatility & Risk

Century Communities has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, AV Homes has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Earnings and Valuation

This table compares Century Communities and AV Homes’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Century Communities $1.41 billion 0.66 $50.29 million $2.87 10.99
AV Homes $843.25 million 0.57 -$21.93 million $0.74 28.92

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

Insider & Institutional Ownership

78.9% of Century Communities shares are held by institutional investors. Comparatively, 86.2% of AV Homes shares are held by institutional investors. 13.9% of Century Communities shares are held by company insiders. Comparatively, 7.7% of AV Homes shares are held by company 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.

Summary

Century Communities beats AV Homes on 12 of the 14 factors compared between the two stocks.

About Century Communities

Century Communities, Inc. engages in the development, design, construction, marketing, and sale of single-family attached and detached homes in metropolitan areas in California, Colorado, Georgia, Nevada, North Carolina, South Carolina, Tennessee, Texas, Utah, and Washington. It is also involved in the entitlement and development of the underlying land; and the provision of mortgage services and title services to its home buyers. The company sells homes through its sales representatives, as well as through independent real estate brokers. Century Communities, Inc. was founded in 2000 and is headquartered in Greenwood Village, Colorado.

About AV Homes

AV Homes, Inc. engages in the homebuilding and community development businesses in Florida, the Carolinas, Arizona, and Texas markets. The company is involved in the acquisition, development, and building of active adult communities, which are age-restricted to the age 55 and over active adult demographic; and primary residential home communities under local Savvy Homes, Bonterra Builders, Royal Oak Homes, and Oakdale-Hampton brands for first-time and move-up buyers. It also engages in the construction and sale of residences within the communities. In addition, the company is involved in other real estate activities, such as the operation of amenities; and the sale of land for third-party development. As of December 31, 2017, it owned 4,911 developed residential lots; 2,395 partially developed residential lots; 8,776 undeveloped residential lots; and 6,980 acres of mixed-use, commercial, and industrial land. The company was formerly known as Avatar Holdings Inc. and changed its name to AV Homes, Inc. in February 2012. AV Homes, Inc. was founded in 1970 and is headquartered in Scottsdale, Arizona.

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