Analyzing SharkNinja (NYSE:SN) and Hovnanian Enterprises (NYSE:HOV)

Hovnanian Enterprises (NYSE:HOV) and SharkNinja (NYSE:SN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Risk & Volatility

Hovnanian Enterprises has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, SharkNinja has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Insider & Institutional Ownership

65.4% of Hovnanian Enterprises shares are owned by institutional investors. Comparatively, 34.8% of SharkNinja shares are owned by institutional investors. 22.7% of Hovnanian Enterprises shares are owned by insiders. Comparatively, 40.8% of SharkNinja shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Hovnanian Enterprises and SharkNinja’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hovnanian Enterprises	1.25%	11.23%	2.89%
SharkNinja	10.06%	27.79%	14.19%

Earnings & Valuation

This table compares Hovnanian Enterprises and SharkNinja”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hovnanian Enterprises	$2.98 billion	0.23	$63.87 million	$3.64	32.47
SharkNinja	$6.40 billion	3.96	$701.37 million	$4.90	36.68

SharkNinja has higher revenue and earnings than Hovnanian Enterprises. Hovnanian Enterprises is trading at a lower price-to-earnings ratio than SharkNinja, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Hovnanian Enterprises and SharkNinja, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hovnanian Enterprises	1	3	0	0	1.75
SharkNinja	0	1	12	0	2.92

Hovnanian Enterprises presently has a consensus target price of $97.00, suggesting a potential downside of 17.93%. SharkNinja has a consensus target price of $188.59, suggesting a potential upside of 4.92%. Given SharkNinja’s stronger consensus rating and higher possible upside, analysts clearly believe SharkNinja is more favorable than Hovnanian Enterprises.

Summary

SharkNinja beats Hovnanian Enterprises on 12 of the 14 factors compared between the two stocks.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas. 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. It also provides mortgage loans, title insurance, and homeowner’s insurance services. The company was founded in 1959 and is headquartered in Matawan, New Jersey.

About SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.