Comparing Loma Negra Compania Industrial Argentina (NYSE:LOMA) & NVR (NYSE:NVR)

Loma Negra Compania Industrial Argentina (NYSE:LOMA) and NVR (NYSE:NVR) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Loma Negra Compania Industrial Argentina and NVR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loma Negra Compania Industrial Argentina	4.38%	3.27%	1.83%
NVR	12.93%	32.66%	21.16%

Earnings & Valuation

This table compares Loma Negra Compania Industrial Argentina and NVR”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loma Negra Compania Industrial Argentina	$692.89 million	1.95	$18.87 million	$0.24	48.15
NVR	$10.09 billion	1.65	$1.34 billion	$410.17	15.08

NVR has higher revenue and earnings than Loma Negra Compania Industrial Argentina. NVR is trading at a lower price-to-earnings ratio than Loma Negra Compania Industrial Argentina, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

19.3% of Loma Negra Compania Industrial Argentina shares are owned by institutional investors. Comparatively, 83.7% of NVR shares are owned by institutional investors. 8.6% of NVR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Loma Negra Compania Industrial Argentina has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, NVR has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Loma Negra Compania Industrial Argentina and NVR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loma Negra Compania Industrial Argentina	0	1	1	0	2.50
NVR	1	4	2	0	2.14

Loma Negra Compania Industrial Argentina currently has a consensus target price of $16.00, indicating a potential upside of 38.47%. NVR has a consensus target price of $7,649.33, indicating a potential upside of 23.69%. Given Loma Negra Compania Industrial Argentina’s stronger consensus rating and higher probable upside, research analysts clearly believe Loma Negra Compania Industrial Argentina is more favorable than NVR.

Summary

NVR beats Loma Negra Compania Industrial Argentina on 10 of the 14 factors compared between the two stocks.

About Loma Negra Compania Industrial Argentina

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.

About NVR

NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers. It also provides various mortgage related services to its homebuilding customers, as well as brokers title insurance; performs title searches in connection with mortgage loan closings; and sells mortgage loans to investors in the secondary markets on a servicing released basis. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, Georgia, South Carolina, Florida, Tennessee, and Washington, D.C. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia.