NVR (NYSE: NVR) and TRI Pointe Group (NYSE:TPH) are both mid-cap construction companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Earnings & Valuation
This table compares NVR and TRI Pointe Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NVR||$6.12 billion||1.64||$800.07 million||$126.57||21.20|
|TRI Pointe Group||$2.32 billion||0.85||$210.85 million||$0.84||15.55|
This table compares NVR and TRI Pointe Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TRI Pointe Group||5.77%||7.32%||3.71%|
Insider & Institutional Ownership
77.3% of NVR shares are owned by institutional investors. Comparatively, 98.7% of TRI Pointe Group shares are owned by institutional investors. 11.3% of NVR shares are owned by company insiders. Comparatively, 9.4% of TRI Pointe Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
NVR has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, TRI Pointe Group has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for NVR and TRI Pointe Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TRI Pointe Group||1||4||3||0||2.25|
NVR presently has a consensus price target of $2,645.00, indicating a potential downside of 1.44%. TRI Pointe Group has a consensus price target of $14.00, indicating a potential upside of 7.20%. Given TRI Pointe Group’s stronger consensus rating and higher possible upside, analysts clearly believe TRI Pointe Group is more favorable than NVR.
NVR beats TRI Pointe Group on 9 of the 14 factors compared between the two stocks.
NVR, Inc. is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. The Company’s segments are Homebuilding Mid Atlantic, Homebuilding North East, Homebuilding Mid East, Homebuilding South East and Mortgage Banking. Its Homebuilding Mid Atlantic segment operates in various geographic regions, which include Maryland, Virginia, West Virginia, Delaware and Washington, District of Columbia (D.C.). Its Homebuilding North East segment operates in various geographic regions, which include New Jersey and Eastern Pennsylvania. Its Homebuilding Mid East segment operates in various geographic regions, which include New York, Ohio, Indiana and Illinois, The Homebuilding South East segment operates in various geographic regions, which include North Carolina, South Carolina, Florida and Tennessee. The Mortgage Banking segment provides mortgage-related services to home building customers through its mortgage banking operations.
About TRI Pointe Group
TRI Pointe Group, Inc. is a homebuilder company. The Company’s operations are organized in two principal businesses, including homebuilding and financial services. Its homebuilding operation consists of six segments: Maracay Homes, including operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado, and Winchester Homes, consisting of operations in Maryland and Virginia. Its financial services operation (TRI Pointe Solutions) includes mortgage financing operations and title services operations. Its mortgage financing operation (TRI Pointe Connect) provides mortgage financing to its homebuyers in all of its operated markets. Its title services operation (TRI Pointe Assurance) provides title examinations for its homebuyers in its Trendmaker Homes and Winchester Homes brands.
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