New Home (NYSE: NWHM) is one of 23 public companies in the “Homebuilding” industry, but how does it compare to its rivals? We will compare New Home to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Institutional & Insider Ownership

55.7% of New Home shares are owned by institutional investors. Comparatively, 79.0% of shares of all “Homebuilding” companies are owned by institutional investors. 24.2% of New Home shares are owned by insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for New Home and its rivals, as reported 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 263 1565 1604 26 2.40

As a group, “Homebuilding” companies have a potential upside of 0.06%. Given New Home’s rivals higher probable upside, analysts plainly believe New Home has less favorable growth aspects than its rivals.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
New Home $694.46 million $21.02 million 13.09
New Home Competitors $3.83 billion $231.12 million 458.20

New Home’s rivals have higher revenue and earnings than New Home. New Home is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares New Home and its rivals’ 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 9.75% 14.94% 7.99%

Risk & Volatility

New Home has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, New Home’s rivals have a beta of 1.51, meaning that their average stock price is 51% more volatile than the S&P 500.

Summary

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

About New Home

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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