Critical Review: NVR (NYSE:NVR) and Loma Negra Compania Industrial Argentina (NYSE:LOMA)

NVR (NYSE:NVRGet Free Report) and Loma Negra Compania Industrial Argentina (NYSE:LOMAGet Free Report) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NVR and Loma Negra Compania Industrial Argentina, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVR 1 4 2 0 2.14
Loma Negra Compania Industrial Argentina 0 1 1 0 2.50

NVR presently has a consensus target price of $7,649.33, indicating a potential upside of 20.05%. Loma Negra Compania Industrial Argentina has a consensus target price of $16.00, indicating a potential upside of 30.45%. Given Loma Negra Compania Industrial Argentina’s stronger consensus rating and higher probable upside, analysts clearly believe Loma Negra Compania Industrial Argentina is more favorable than NVR.

Profitability

This table compares NVR and Loma Negra Compania Industrial Argentina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NVR 12.93% 32.66% 21.16%
Loma Negra Compania Industrial Argentina 4.38% 3.27% 1.83%

Institutional & Insider Ownership

83.7% of NVR shares are held by institutional investors. Comparatively, 19.3% of Loma Negra Compania Industrial Argentina shares are held by institutional investors. 8.6% of NVR shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares NVR and Loma Negra Compania Industrial Argentina”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NVR $10.09 billion 1.70 $1.34 billion $410.17 15.54
Loma Negra Compania Industrial Argentina $692.89 million 2.07 $18.87 million $0.24 51.10

NVR has higher revenue and earnings than Loma Negra Compania Industrial Argentina. NVR is trading at a lower price-to-earnings ratio than Loma Negra Compania Industrial Argentina, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

NVR has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Loma Negra Compania Industrial Argentina has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Summary

NVR beats Loma Negra Compania Industrial Argentina on 10 of the 14 factors compared between the two stocks.

About NVR

(Get Free Report)

NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers. It also provides various mortgage related services to its homebuilding customers, as well as brokers title insurance; performs title searches in connection with mortgage loan closings; and sells mortgage loans to investors in the secondary markets on a servicing released basis. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, Georgia, South Carolina, Florida, Tennessee, and Washington, D.C. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia.

About Loma Negra Compania Industrial Argentina

(Get Free Report)

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.

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