NVR (NYSE:NVR – Get Free Report) and Aterian (NASDAQ:ATER – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
83.7% of NVR shares are owned by institutional investors. Comparatively, 7.0% of Aterian shares are owned by institutional investors. 8.6% of NVR shares are owned by company insiders. Comparatively, 19.5% of Aterian shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for NVR and Aterian, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NVR | 1 | 3 | 3 | 0 | 2.29 |
| Aterian | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares NVR and Aterian’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NVR | 12.26% | 31.02% | 19.89% |
| Aterian | -49.30% | -92.04% | -47.83% |
Valuation and Earnings
This table compares NVR and Aterian”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NVR | $10.09 billion | 1.62 | $1.34 billion | $385.59 | 15.97 |
| Aterian | $68.97 million | 0.08 | -$18.98 million | ($1.99) | -0.29 |
NVR has higher revenue and earnings than Aterian. Aterian is trading at a lower price-to-earnings ratio than NVR, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NVR has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Aterian has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
Summary
NVR beats Aterian on 13 of the 14 factors compared between the two stocks.
About NVR
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 Aterian
Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.
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