William Lyon Homes (NYSE: WLH) is one of 20 publicly-traded companies in the “Operative builders” industry, but how does it contrast to its peers? We will compare William Lyon Homes to similar businesses based on the strength of its dividends, earnings, valuation, profitability, analyst recommendations, risk and institutional ownership.

Analyst Ratings

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This is a breakdown of current ratings and target prices for William Lyon Homes and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
William Lyon Homes 0 2 2 0 2.50
William Lyon Homes Competitors 239 919 803 52 2.33

William Lyon Homes presently has a consensus target price of $33.00, indicating a potential upside of 18.62%. As a group, “Operative builders” companies have a potential downside of 0.14%. Given William Lyon Homes’ stronger consensus rating and higher probable upside, analysts plainly believe William Lyon Homes is more favorable than its peers.

Institutional & Insider Ownership

81.9% of William Lyon Homes shares are owned by institutional investors. Comparatively, 77.9% of shares of all “Operative builders” companies are owned by institutional investors. 22.3% of William Lyon Homes shares are owned by company insiders. Comparatively, 15.5% of shares of all “Operative builders” companies are owned 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.

Volatility & Risk

William Lyon Homes has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, William Lyon Homes’ peers have a beta of 1.10, suggesting that their average share price is 10% more volatile than the S&P 500.

Earnings and Valuation

This table compares William Lyon Homes and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
William Lyon Homes $1.80 billion $48.13 million 12.59
William Lyon Homes Competitors $4.18 billion $223.65 million 14.19

William Lyon Homes’ peers have higher revenue and earnings than William Lyon Homes. William Lyon Homes is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares William Lyon Homes and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
William Lyon Homes 2.68% 10.51% 4.12%
William Lyon Homes Competitors 2.26% 7.08% 5.25%

Summary

William Lyon Homes beats its peers on 8 of the 13 factors compared.

About William Lyon Homes

William Lyon Homes, together with its subsidiaries, designs, constructs, markets, and sells single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington, and Oregon. It sells its homes primarily to entry-level, and first-time and second-time move-up homebuyers, as well as to luxury home and active adult markets under the Village Homes and Polygon Northwest Homes brands through in-house commissioned sales personnel and outside brokers. As of December 31, 2017, the company owned approximately 13,256 lots and had options to purchase an additional 4,180 lots. William Lyon Homes was founded in 1954 and is headquartered in Newport Beach, California.

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