Hovnanian Enterprises (NYSE:HOV) versus Lennar Corporation (LEN.B) Financial Analysis
Hovnanian Enterprises (NYSE: HOV) and Lennar Corporation (NYSE:LEN.B) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Risk and Volatility
Hovnanian Enterprises has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Lennar Corporation has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
Institutional & Insider Ownership
29.7% of Hovnanian Enterprises shares are owned by institutional investors. Comparatively, 3.2% of Lennar Corporation shares are owned by institutional investors. 15.4% of Hovnanian Enterprises shares are owned by insiders. Comparatively, 15.0% of Lennar Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Lennar Corporation pays an annual dividend of $0.16 per share. Hovnanian Enterprises does not pay a dividend. Lennar Corporation pays out 4.7% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Hovnanian Enterprises and Lennar Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hovnanian Enterprises currently has a consensus price target of $1.55, suggesting a potential downside of 31.72%.
This table compares Hovnanian Enterprises and Lennar Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Hovnanian Enterprises and Lennar Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hovnanian Enterprises||$2.66 billion||0.11||$137.91 million||$0.09||25.22|
Hovnanian Enterprises has higher revenue and earnings than Lennar Corporation. Lennar Corporation is trading at a lower price-to-earnings ratio than Hovnanian Enterprises, indicating that it is currently the more affordable of the two stocks.
Hovnanian Enterprises beats Lennar Corporation on 6 of the 10 factors compared between the two stocks.
Hovnanian Enterprises Company Profile
Hovnanian Enterprises, Inc. is a builder of residential homes. The Company designs, constructs, markets and sells single-family detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. The Company has two distinct operations: homebuilding and financial services. Its homebuilding operations consist of six segments: Northeast: New Jersey and Pennsylvania; Mid-Atlantic: Delaware, Maryland, Virginia, Washington, District of Columbia, and West Virginia; Midwest: Illinois and Ohio; Southeast: Florida, Georgia and South Carolina; Southwest: Arizona and Texas, and West: California. Its financial services operations provide mortgage loans and title services to the customers of its homebuilding operations. The Company markets and builds homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers and empty nesters.
Lennar Corporation Company Profile
Lennar Corporation is a provider of real estate related financial services, commercial real estate, investment management and finance company. The Company is a homebuilder that operates in various states. Its segments include Homebuilding East, Homebuilding Central, Homebuilding West, Lennar Financial Services, Rialto and Lennar Multifamily. It is a developer of multifamily rental properties. Its Homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land. It operates primarily under the Lennar brand name. The Lennar Financial Services segment includes mortgage financing, title insurance and closing services for both buyers of its homes and others. The Rialto segment is a real estate, investment management, and finance company. The Lennar Multifamily segment focuses on developing a portfolio of institutional multifamily rental properties in the United States markets.
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