NVR (NYSE: NVR) and M/I Homes (NYSE:MHO) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility & Risk

NVR has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, M/I Homes has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Insider and Institutional Ownership

78.9% of NVR shares are held by institutional investors. Comparatively, 96.9% of M/I Homes shares are held by institutional investors. 11.3% of NVR shares are held by company insiders. Comparatively, 4.7% of M/I Homes shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NVR and M/I Homes, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVR 0 3 2 0 2.40
M/I Homes 0 1 2 0 2.67

NVR currently has a consensus price target of $2,645.00, indicating a potential downside of 21.68%. M/I Homes has a consensus price target of $35.00, indicating a potential downside of 1.93%. Given M/I Homes’ stronger consensus rating and higher possible upside, analysts clearly believe M/I Homes is more favorable than NVR.

Valuation and Earnings

This table compares NVR and M/I Homes’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
NVR $5.71 billion 2.21 $425.26 million $136.13 24.81
M/I Homes $1.69 billion 0.58 $56.60 million $2.41 14.81

NVR has higher revenue and earnings than M/I Homes. M/I Homes is trading at a lower price-to-earnings ratio than NVR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NVR and M/I Homes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NVR 9.22% 38.23% 19.86%
M/I Homes 4.00% 12.31% 4.89%

Summary

NVR beats M/I Homes on 9 of the 13 factors compared between the two stocks.

NVR Company Profile

NVR, Inc. is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. The Company’s segments are Homebuilding Mid Atlantic, Homebuilding North East, Homebuilding Mid East, Homebuilding South East and Mortgage Banking. Its Homebuilding Mid Atlantic segment operates in various geographic regions, which include Maryland, Virginia, West Virginia, Delaware and Washington, District of Columbia (D.C.). Its Homebuilding North East segment operates in various geographic regions, which include New Jersey and Eastern Pennsylvania. Its Homebuilding Mid East segment operates in various geographic regions, which include New York, Ohio, Indiana and Illinois, The Homebuilding South East segment operates in various geographic regions, which include North Carolina, South Carolina, Florida and Tennessee. The Mortgage Banking segment provides mortgage-related services to home building customers through its mortgage banking operations.

M/I Homes Company Profile

M/I Homes, Inc. is a builder of single-family homes. The Company consists of two operations: homebuilding and financial services. It operates through Midwest homebuilding, Southern homebuilding, Mid-Atlantic homebuilding and financial services operations segments. The Company and its subsidiaries are engaged primarily in the construction and sale of single-family residential homes in 15 markets: Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Tampa, Orlando and Sarasota, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C. The Company’s financial services operations support its homebuilding operations by providing mortgage loans and title services to the customers of its homebuilding operations. It markets and sells homes primarily under the M/I Homes brand (M/I Homes and Showcase Collection (by M/I)).

Receive News & Ratings for NVR Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVR Inc. and related companies with MarketBeat.com's FREE daily email newsletter.