Sekisui House (OTCMKTS:SKHSY) vs. NVR (NYSE:NVR) Financial Contrast

Sekisui House (OTCMKTS:SKHSY) and NVR (NYSE:NVR) are both large-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Sekisui House and NVR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sekisui House	4.67%	10.07%	4.16%
NVR	14.00%	35.81%	23.23%

Institutional & Insider Ownership

0.0% of Sekisui House shares are held by institutional investors. Comparatively, 83.7% of NVR shares are held by institutional investors. 7.0% of NVR shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Sekisui House has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, NVR has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sekisui House and NVR”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sekisui House	$26.67 billion	0.55	$1.44 billion	$2.04	10.78
NVR	$10.48 billion	1.99	$1.68 billion	$455.63	16.12

NVR has lower revenue, but higher earnings than Sekisui House. Sekisui House is trading at a lower price-to-earnings ratio than NVR, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sekisui House and NVR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sekisui House	0	1	0	0	2.00
NVR	0	3	1	0	2.25

NVR has a consensus price target of $8,366.67, suggesting a potential upside of 13.92%. Given NVR’s stronger consensus rating and higher probable upside, analysts clearly believe NVR is more favorable than Sekisui House.

Summary

NVR beats Sekisui House on 13 of the 14 factors compared between the two stocks.

About Sekisui House

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. The company operates through Custom Detached Houses, Rental Housing, Architectural/Civil Engineering, Remodeling, Real Estate Management Fees, Houses For Sale, Condominiums, Urban Redevelopment, and Overseas segments. It also engages in contracting of design and construction of custom detached houses, rental housing, office building, commercial buildings, and other properties; construction of reinforced concrete rental housing and commercial buildings; contracting of design and construction of civil engineering works; remodeling and renovation of houses; subleasing, management, operation, and brokerage of real estate; sale of houses and residential land; and sales of condominiums. Sekisui House, Ltd. was incorporated in 1929 and is headquartered in Osaka, Japan.

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.