Beazer Homes USA (NYSE:BZH) and NVR (NYSE:NVR) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.
Risk & Volatility
Beazer Homes USA has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500. Comparatively, NVR has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Profitability
This table compares Beazer Homes USA and NVR's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Beazer Homes USA | 2.46% | 10.34% | 2.82% |
| NVR | 12.16% | 33.14% | 19.02% |
Valuation and Earnings
This table compares Beazer Homes USA and NVR's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Beazer Homes USA | $2.13 billion | 0.29 | $52.23 million | $1.89 | 10.34 |
| NVR | $7.22 billion | 2.46 | $878.54 million | $221.13 | 21.83 |
NVR has higher revenue and earnings than Beazer Homes USA. Beazer Homes USA is trading at a lower price-to-earnings ratio than NVR, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Beazer Homes USA and NVR, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Beazer Homes USA | 0 | 0 | 1 | 0 | 3.00 |
| NVR | 0 | 2 | 3 | 0 | 2.60 |
Beazer Homes USA presently has a consensus price target of $22.00, suggesting a potential upside of 12.59%. NVR has a consensus price target of $5,324.50, suggesting a potential upside of 10.32%. Given Beazer Homes USA's stronger consensus rating and higher probable upside, analysts plainly believe Beazer Homes USA is more favorable than NVR.
Insider and Institutional Ownership
72.8% of Beazer Homes USA shares are owned by institutional investors. Comparatively, 82.1% of NVR shares are owned by institutional investors. 7.2% of Beazer Homes USA shares are owned by company insiders. Comparatively, 9.0% of NVR shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
NVR beats Beazer Homes USA on 11 of the 14 factors compared between the two stocks.
