CVCO vs SKY: How Cavco Industries and Champion Homes Compare (2026)
Last updated August 2026
Short answer
CVCO and SKY are similarly sized, but CVCO trades noticeably cheaper on forward earnings (18.93x vs 22.65x): the market is paying up for SKY's profile and pricing CVCO more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
CVCO vs SKY: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | CVCO | SKY | What it tells you |
|---|---|---|---|
| Market cap | $4.22B | $5.00B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 18.93 | 22.65 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 23.77 | 24.91 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.28 | 1.00 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 43% of range | 77% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 3.84 | 3.18 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: CVCO is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how CVCO and SKY affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. CVCO and SKY share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined CVCO and SKY exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Cavco Industries (CVCO) do?
Cavco Industries designs and builds factory-built homes (manufactured homes, modular homes, and commercial and park-model structures) across roughly 33 production lines, distributing through about 92 company-owned retail stores plus a network of independent retailers. Beyond building homes, it runs two financial-services arms: CountryPlace Mortgage, which originates and services home-only (chattel) and land-home mortgages, and Standard Casualty, an insurance subsidiary covering manufactured homes. That vertically integrated model lets Cavco capture margin across construction, distribution, financing, and insurance.
What does Champion Homes (SKY) do?
Champion Homes, Inc. (NYSE: SKY, renamed from Skyline Champion) designs and builds manufactured and modular homes at ~46 plants across the US and Canada, plus park model RVs, accessory dwelling units and modular buildings for multi-family and hospitality customers. Homes reach buyers through independent retailers, builder-developers, manufactured housing communities and a growing company-owned retail network that has expanded from 18 sales centers in fiscal 2022 to roughly 95 today. The company also runs Star Fleet Trucking for transport and installation logistics, and lends through Champion Financing, a joint venture with Triad Financial Services, so it touches production, distribution and the customer's financing in a way most manufacturers do not.
CVCO vs SKY: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- CVCO drivers: Structural affordability tailwind; Fortress balance sheet and buybacks.
- SKY drivers: The affordability gap keeps widening; Vertical integration into retail and financing.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Demand is highly sensitive to interest rates because many buyers rely on chattel (home-only) loans that carry higher rates than traditional mortgages, so elevated rates directly dampen affordability and orders. For SKY, champion's volumes are hostage to chattel lending, the personal-property loan most manufactured home buyers use, which carries higher rates than a conventional mortgage and has no meaningful GSE secondary market despite years of pilot discussion.
CVCO or SKY: which should you pick?
CVCO vs SKY: the full fundamentals
CVCO. Fiscal 2026 (ended March 2026) revenue rose about 11% to roughly $2.25 billion with record home deliveries and gross margin near 23%. At around $570 per share the market cap is roughly $4.4 billion, a trailing P/E near 24x that sits well above the homebuilding industry median of around 12x. The premium reflects the net-cash balance sheet and consistent returns, so the multiple assumes continued volume growth.
SKY. Fiscal 2026 (ended March 2026) was the peak: net sales up 7.3% to ~$2.7 billion, net income ~$206.9 million and adjusted EBITDA ~$308.2 million. Trailing results have since rolled over, with first-quarter fiscal 2027 net sales up only 1.3% to ~$710.2 million and net income of ~$49.2 million (diluted EPS ~$0.89) as material costs rose and Energy Star credits went away. At roughly 27x trailing earnings the shares trade at a clear premium to the manufactured and site-built housing peer group, which has generally sat in the low-to-mid teens, so the multiple is discounting a volume recovery that has not shown up in the numbers yet.
Headline figures (approximate, JULY 2026): CVCO shows revenue (fy2026) ~$2.25B, net income (fy2026) ~$191M, diluted eps (fy2026) ~$23.98, market cap ~$4.4B; SKY shows revenue (ttm) ~$2.67 billion, net income (ttm) ~$191 million, diluted eps (ttm) ~$3.42, market cap ~$5.0 billion.
The bottom line: CVCO vs SKY
CVCO and SKY are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined CVCO and SKY exposure against your real portfolio. It is not an investment adviser.
Wondering how CVCO or SKY fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Cavco Industries with AI
Connect the broker you already use and ask Walnut's AI how CVCO fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between CVCO and SKY?
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Cavco Industries designs and builds factory-built homes (manufactured homes, modular homes, and commercial and park-model structures) across roughly 33 production lines, distributing through about 92 company-owned retail stores plus a network of independent retailers. Champion Homes, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is CVCO or SKY the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, CVCO or SKY?
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On forward P/E (as of August 2026), CVCO trades at 18.93x and SKY at 22.65x, so CVCO is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both CVCO and SKY?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of CVCO vs SKY?
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CVCO: Demand is highly sensitive to interest rates because many buyers rely on chattel (home-only) loans that carry higher rates than traditional mortgages, so elevated rates directly dampen affordability and orders. The backlog can be canceled without penalty before production, exposing Cavco to swings in consumer confidence. The business is cyclical and tied to housing affordability, employment, and financing availability. The stock trades at a premium P/E well above the homebuilding industry median, leaving little room for disappointment. Competition from much larger Clayton Homes and public peer Skyline Champion, plus input-cost and labor pressures, can squeeze margins. SKY: Champion's volumes are hostage to chattel lending, the personal-property loan most manufactured home buyers use, which carries higher rates than a conventional mortgage and has no meaningful GSE secondary market despite years of pilot discussion. Local zoning and placement bans keep the product out of many of the markets where affordability pressure is worst, so demand does not convert cleanly into shipments. Margins are exposed to lumber, steel and gypsum costs, and the recent elimination of Energy Star tax credits removed a real profit contributor. The company competes directly with Clayton Homes, which is roughly twice its size and sits inside Berkshire Hathaway with a captive lender in 21st Mortgage, a structural funding advantage Champion cannot match. Finally, the stock's earnings multiple is well above the site-built homebuilder group, so a stretch of flat volumes leaves little cushion if sentiment on the housing cycle turns.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell CVCO or SKY; figures are approximate and dated (as of August 2026). Verify current data before investing.