Wisdom Homes of America (OTCMKTS:WOFA) and Lowe’s Companies (NYSE:LOW) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Insider & Institutional Ownership
74.3% of Lowe’s Companies shares are held by institutional investors. 33.3% of Wisdom Homes of America shares are held by insiders. Comparatively, 0.3% of Lowe’s Companies shares are held 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.
Dividends
Lowe’s Companies pays an annual dividend of $1.92 per share and has a dividend yield of 2.2%. Wisdom Homes of America does not pay a dividend. Lowe’s Companies pays out 43.7% of its earnings in the form of a dividend. Lowe’s Companies has increased its dividend for 55 consecutive years.
Analyst Recommendations
This is a summary of recent ratings and price targets for Wisdom Homes of America and Lowe’s Companies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wisdom Homes of America | 0 | 0 | 0 | 0 | N/A |
| Lowe’s Companies | 0 | 8 | 21 | 0 | 2.72 |
Lowe’s Companies has a consensus target price of $111.88, indicating a potential upside of 30.15%. Given Lowe’s Companies’ higher possible upside, analysts clearly believe Lowe’s Companies is more favorable than Wisdom Homes of America.
Earnings and Valuation
This table compares Wisdom Homes of America and Lowe’s Companies’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wisdom Homes of America | N/A | N/A | N/A | N/A | N/A |
| Lowe’s Companies | $68.62 billion | 1.01 | $3.45 billion | $4.39 | 19.58 |
Lowe’s Companies has higher revenue and earnings than Wisdom Homes of America.
Volatility and Risk
Wisdom Homes of America has a beta of 2.77, suggesting that its stock price is 177% more volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
Profitability
This table compares Wisdom Homes of America and Lowe’s Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wisdom Homes of America | N/A | N/A | N/A |
| Lowe’s Companies | 5.19% | 72.47% | 11.21% |
Summary
Lowe’s Companies beats Wisdom Homes of America on 9 of the 12 factors compared between the two stocks.
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.
About Lowe’s Companies
Lowe’s Cos., Inc. engages in the retail sale of home improvement products. It offers products for maintenance, repair, remodeling, home decorating, and property maintenance. It also provides home improvement products in the following categories: appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lighting & fans, outdoor living, windows, and doors. The company was founded in 1946 and is headquartered in Mooresville, NC.
Receive News & Ratings for Wisdom Homes of America Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Wisdom Homes of America and related companies with MarketBeat.com’s FREE daily email newsletter.
