Comparing New Home (NWHM) & The Competition

New Home (NYSE: NWHM) is one of 22 public companies in the “Homebuilding” industry, but how does it compare to its competitors? We will compare New Home to similar businesses based on the strength of its dividends, valuation, profitability, institutional ownership, earnings, analyst recommendations and risk.

Profitability

This table compares New Home and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Home 2.73% 9.52% 4.26%
New Home Competitors 9.86% 15.26% 8.30%

Valuation & Earnings

This table compares New Home and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
New Home $694.46 million $21.02 million 12.68
New Home Competitors $3.83 billion $231.12 million 519.38

New Home’s competitors have higher revenue and earnings than New Home. New Home 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.

Risk and Volatility

New Home has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, New Home’s competitors have a beta of 1.51, meaning that their average share price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for New Home and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Home 0 0 0 0 N/A
New Home Competitors 266 1628 1887 36 2.44

As a group, “Homebuilding” companies have a potential downside of 1.11%. Given New Home’s competitors higher probable upside, analysts clearly believe New Home has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

55.7% of New Home shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are owned by institutional investors. 24.2% of New Home shares are owned by company insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

New Home competitors beat New Home on 8 of the 10 factors compared.

New Home Company Profile

The New Home Company Inc. is a homebuilding company. The Company focuses on the design, construction and sale of consumer-driven homes in various metropolitan areas within certain markets in California and Arizona, including coastal Southern California, the San Francisco Bay area, metro Sacramento and the greater Phoenix area. The Company’s segments include homebuilding and fee building. The homebuilding operations consist of divisions in Northern California, Southern California and its division in Arizona, which is established through the purchase of lots in an unconsolidated joint venture. The Company is focused on building and selling homes for its own account. It is focused on identifying sites and creating communities that allow it to design, construct and sell consumer-driven single-family detached and attached homes in major metropolitan areas in coastal Southern California, the San Francisco Bay area, metro Sacramento and the greater Phoenix area.

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