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LEN vs. NVR: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Building Products - Home Builders sector might want to consider either Lennar (LEN - Free Report) or NVR (NVR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Lennar is sporting a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LEN has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LEN currently has a forward P/E ratio of 11.83, while NVR has a forward P/E of 14.34. We also note that LEN has a PEG ratio of 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NVR currently has a PEG ratio of 3.37.
Another notable valuation metric for LEN is its P/B ratio of 1.35. 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 4.96.
These are just a few of the metrics contributing to LEN's Value grade of A and NVR's Value grade of C.
LEN sticks out from NVR in both our Zacks Rank and Style Scores models, so value investors will likely feel that LEN is the better option right now.
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LEN vs. NVR: Which Stock Is the Better Value Option?
Investors looking for stocks in the Building Products - Home Builders sector might want to consider either Lennar (LEN - Free Report) or NVR (NVR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Lennar is sporting a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LEN has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LEN currently has a forward P/E ratio of 11.83, while NVR has a forward P/E of 14.34. We also note that LEN has a PEG ratio of 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NVR currently has a PEG ratio of 3.37.
Another notable valuation metric for LEN is its P/B ratio of 1.35. 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 4.96.
These are just a few of the metrics contributing to LEN's Value grade of A and NVR's Value grade of C.
LEN sticks out from NVR in both our Zacks Rank and Style Scores models, so value investors will likely feel that LEN is the better option right now.