Hovnanian Enterprises (NYSE: HOV) is one of 12 public companies in the “Residential Builders – Single Homes” industry, but how does it weigh in compared to its competitors? We will compare Hovnanian Enterprises to related companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, valuation, risk and dividends.

Volatility and Risk

Hovnanian Enterprises has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Hovnanian Enterprises’ competitors have a beta of 1.44, indicating that their average stock price is 44% more volatile than the S&P 500.

Earnings & Valuation

This table compares Hovnanian Enterprises and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Hovnanian Enterprises $2.75 billion -$2.81 million -1.07
Hovnanian Enterprises Competitors $5.32 billion $382.45 million 14.46

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

Institutional & Insider Ownership

30.9% of Hovnanian Enterprises shares are owned by institutional investors. Comparatively, 71.9% of shares of all “Residential Builders – Single Homes” companies are owned by institutional investors. 15.4% of Hovnanian Enterprises shares are owned by insiders. Comparatively, 13.8% of shares of all “Residential Builders – Single Homes” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Hovnanian Enterprises and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hovnanian Enterprises 1 1 0 0 1.50
Hovnanian Enterprises Competitors 83 496 517 24 2.43

Hovnanian Enterprises presently has a consensus price target of $1.30, suggesting a potential downside of 44.44%. As a group, “Residential Builders – Single Homes” companies have a potential downside of 18.64%. Given Hovnanian Enterprises’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Hovnanian Enterprises has less favorable growth aspects than its competitors.

Profitability

This table compares Hovnanian Enterprises and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hovnanian Enterprises -12.69% -7.10% 1.18%
Hovnanian Enterprises Competitors 4.03% 11.00% 5.61%

Summary

Hovnanian Enterprises competitors beat Hovnanian Enterprises on 10 of the 13 factors compared.

Hovnanian Enterprises Company Profile

Hovnanian Enterprises, Inc. is a builder of residential homes. The Company designs, constructs, markets and sells single-family detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. The Company has two distinct operations: homebuilding and financial services. Its homebuilding operations consist of six segments: Northeast: New Jersey and Pennsylvania; Mid-Atlantic: Delaware, Maryland, Virginia, Washington, District of Columbia, and West Virginia; Midwest: Illinois and Ohio; Southeast: Florida, Georgia and South Carolina; Southwest: Arizona and Texas, and West: California. Its financial services operations provide mortgage loans and title services to the customers of its homebuilding operations. 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.

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