Critical Analysis: Patrick Industries (NASDAQ:PATK) vs. Deer Valley (OTCMKTS:DVLY)

Patrick Industries (NASDAQ:PATK) and Deer Valley (OTCMKTS:DVLY) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Patrick Industries and Deer Valley, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Patrick Industries	0	3	6	0	2.67
Deer Valley	0	0	0	0	0.00

Patrick Industries currently has a consensus target price of $96.42, suggesting a potential upside of 8.25%. Given Patrick Industries’ stronger consensus rating and higher probable upside, research analysts plainly believe Patrick Industries is more favorable than Deer Valley.

Insider & Institutional Ownership

93.3% of Patrick Industries shares are held by institutional investors. 4.7% of Patrick Industries shares are held by company insiders. Comparatively, 81.6% of Deer Valley shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Patrick Industries and Deer Valley”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Patrick Industries	$3.72 billion	0.80	$138.40 million	$4.17	21.36
Deer Valley	N/A	N/A	N/A	N/A	N/A

Patrick Industries has higher revenue and earnings than Deer Valley.

Profitability

This table compares Patrick Industries and Deer Valley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Patrick Industries	3.74%	12.90%	4.71%
Deer Valley	N/A	N/A	N/A

Summary

Patrick Industries beats Deer Valley on 8 of the 9 factors compared between the two stocks.

About Patrick Industries

Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.

About Deer Valley

Deer Valley Corporation, through its subsidiaries, designs, manufactures, and sells factory built homes primarily in the southeastern and south central regions of the United States. It operates through Factory-Built Housing and Financial Services segments. The company offers HUD code homes and modular homes. It also provides dealer inventory-secured financing for its factory built homes. Deer Valley Corporation markets its products in approximately 14 states through a network of independent dealers, builders, developers, and government agencies. The company was formerly known as Cytation Corporation and changed its name to Deer Valley Corporation in July 2006. Deer Valley Corporation is based in Tampa, Florida. Deer Valley Corporation is a subsidiary of Peerless Systems Corp.