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PHM vs. NVR: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Building Products - Home Builders sector have probably already heard of PulteGroup (PHM - Free Report) and NVR (NVR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, PulteGroup is sporting a Zacks Rank of #1 (Strong Buy), while NVR has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that PHM likely has seen a stronger improvement to its earnings outlook than NVR has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PHM currently has a forward P/E ratio of 7.61, while NVR has a forward P/E of 14.95. We also note that PHM has a PEG ratio of 0.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NVR currently has a PEG ratio of 0.83.
Another notable valuation metric for PHM is its P/B ratio of 2.28. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NVR has a P/B of 5.88.
These metrics, and several others, help PHM earn a Value grade of B, while NVR has been given a Value grade of C.
PHM sticks out from NVR in both our Zacks Rank and Style Scores models, so value investors will likely feel that PHM is the better option right now.
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PHM vs. NVR: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Building Products - Home Builders sector have probably already heard of PulteGroup (PHM - Free Report) and NVR (NVR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, PulteGroup is sporting a Zacks Rank of #1 (Strong Buy), while NVR has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that PHM likely has seen a stronger improvement to its earnings outlook than NVR has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PHM currently has a forward P/E ratio of 7.61, while NVR has a forward P/E of 14.95. We also note that PHM has a PEG ratio of 0.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NVR currently has a PEG ratio of 0.83.
Another notable valuation metric for PHM is its P/B ratio of 2.28. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NVR has a P/B of 5.88.
These metrics, and several others, help PHM earn a Value grade of B, while NVR has been given a Value grade of C.
PHM sticks out from NVR in both our Zacks Rank and Style Scores models, so value investors will likely feel that PHM is the better option right now.