NVR (NYSE: NVR) is one of 11 publicly-traded companies in the “Residential Builders – Single Homes” industry, but how does it compare to its competitors? We will compare NVR to similar businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
NVR 9.22% 38.23% 19.86%
NVR Competitors 3.79% 10.87% 5.61%

Volatility & Risk

NVR has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, NVR’s competitors have a beta of 1.48, meaning that their average share price is 48% more volatile than the S&P 500.

Valuation & Earnings

This table compares NVR and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
NVR $5.71 billion $425.26 million 24.36
NVR Competitors $4.76 billion $329.51 million 14.48

NVR has higher revenue and earnings than its competitors. NVR is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for NVR and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVR 0 3 2 0 2.40
NVR Competitors 82 405 387 16 2.38

NVR presently has a consensus target price of $2,645.00, suggesting a potential downside of 20.27%. As a group, “Residential Builders – Single Homes” companies have a potential downside of 9.76%. Given NVR’s competitors higher probable upside, analysts plainly believe NVR has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

78.9% of NVR shares are owned by institutional investors. Comparatively, 70.1% of shares of all “Residential Builders – Single Homes” companies are owned by institutional investors. 11.3% of NVR shares are owned by company insiders. Comparatively, 14.0% of shares of all “Residential Builders – Single Homes” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

NVR beats its competitors on 8 of the 13 factors compared.

About NVR

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.

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