Financial Contrast: Lumber Liquidators (LL) & Wisdom Homes of America (WOFA)

Lumber Liquidators (NYSE:LL) and Wisdom Homes of America (OTCMKTS:WOFA) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

77.2% of Lumber Liquidators shares are owned by institutional investors. 1.9% of Lumber Liquidators shares are owned by insiders. Comparatively, 33.3% of Wisdom Homes of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Lumber Liquidators and Wisdom Homes of America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lumber Liquidators 0 12 1 0 2.08
Wisdom Homes of America 0 0 0 0 N/A

Lumber Liquidators currently has a consensus price target of $16.89, indicating a potential upside of 57.11%. Given Lumber Liquidators’ higher probable upside, analysts clearly believe Lumber Liquidators is more favorable than Wisdom Homes of America.

Volatility and Risk

Lumber Liquidators has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Wisdom Homes of America has a beta of 2.8, meaning that its share price is 180% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lumber Liquidators and Wisdom Homes of America’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lumber Liquidators $1.03 billion 0.30 -$37.82 million ($1.33) -8.18
Wisdom Homes of America N/A N/A N/A N/A N/A

Wisdom Homes of America has lower revenue, but higher earnings than Lumber Liquidators.

Profitability

This table compares Lumber Liquidators and Wisdom Homes of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lumber Liquidators 0.51% 6.14% 2.85%
Wisdom Homes of America N/A N/A N/A

Summary

Lumber Liquidators beats Wisdom Homes of America on 7 of the 9 factors compared between the two stocks.

About Lumber Liquidators

Lumber Liquidators Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories. The company offers hardwood species, engineered hardwood, laminates, resilient vinyl flooring, and wood-look ceramic; renewable flooring, and bamboo and cork products; and a selection of flooring enhancements and accessories, including moldings, noise-reducing underlay, adhesives, and flooring tools under the Bellawood and Morning Star Bamboo brands. It also provides in-home delivery and installation services. The company primarily serves homeowners, or to contractors on behalf of homeowners. As of February 27, 2018, it operated approximately 390 stores in North America. The company also offers its products through its Website, catalogs, and call center. Lumber Liquidators Holdings, Inc. was founded in 1994 and is headquartered in Toano, Virginia.

About Wisdom Homes of America

Wisdom Homes of America, Inc. engages in opening and operating manufactured home retail centers for homebuyers in Texas. The company was formerly known as SearchCore, Inc. and changed its name to Wisdom Homes of America, Inc. in March 2015. Wisdom Homes of America, Inc. was founded in 2003 and is headquartered in Tyler, Texas.

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