WallStSmart

Hovnanian Enterprises Inc (HOV)vsNVR Inc (NVR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NVR Inc generates 255% more annual revenue ($10.44B vs $2.94B). NVR leads profitability with a 12.8% profit margin vs 1.9%. HOV appears more attractively valued with a PEG of 2.00. NVR earns a higher WallStSmart Score of 53/100 (C-).

HOV

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 7.3Quality: 5.0

NVR

Buy

53

out of 100

Grade: C-

Growth: 2.0Profit: 8.5Value: 4.7Quality: 6.0
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HOVSignificantly Overvalued (-194.2%)

Margin of Safety

-194.2%

Fair Value

$44.00

Current Price

$110.24

$66.24 premium

UndervaluedFair: $44.00Overvalued
NVRSignificantly Overvalued (-172.6%)

Margin of Safety

-172.6%

Fair Value

$2970.24

Current Price

$6552.20

$3581.96 premium

UndervaluedFair: $2970.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HOV2 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

NVR2 strengths · Avg: 9.0/10
Return on EquityProfitability
33.2%10/10

Every $100 of equity generates 33 in profit

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

Areas to Watch

HOV4 concerns · Avg: 3.3/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Market CapQuality
$617.87M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

NVR4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.972/10

Expensive relative to growth rate

Revenue GrowthGrowth
-5.0%2/10

Revenue declined 5.0%

EPS GrowthGrowth
-13.1%2/10

Earnings declined 13.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : HOV

The strongest argument for HOV centers on Price/Book, P/E Ratio.

Bull Case : NVR

The strongest argument for NVR centers on Return on Equity, P/E Ratio.

Bear Case : HOV

The primary concerns for HOV are PEG Ratio, Market Cap, Return on Equity. Thin 1.9% margins leave little buffer for downturns.

Bear Case : NVR

The primary concerns for NVR are Piotroski F-Score, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

HOV profiles as a value stock while NVR is a declining play — different risk/reward profiles.

HOV carries more volatility with a beta of 2.07 — expect wider price swings.

NVR is growing revenue faster at -5.0% — sustainability is the question.

NVR generates stronger free cash flow (436M), providing more financial flexibility.

Bottom Line

NVR scores higher overall (53/100 vs 47/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Hovnanian Enterprises Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Hovnanian Enterprises, Inc. is dedicated to the design, construction, marketing and sales of residential homes in the United States. The company is headquartered in Matawan, New Jersey.

NVR Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

NVR, Inc. is a company engaged in home construction. It also operates a mortgage banking and title services business. The company primarily operates on the East Coast of the United States.

Want to dig deeper into these stocks?