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DFH vs. NVR: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Building Products - Home Builders sector have probably already heard of Dream Finders Homes Inc. (DFH - Free Report) and NVR (NVR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Dream Finders Homes Inc. is sporting a Zacks Rank of #1 (Strong Buy), while NVR has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that DFH likely has seen a stronger improvement to its earnings outlook than NVR has recently. 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.
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.
DFH currently has a forward P/E ratio of 12.77, while NVR has a forward P/E of 15.94. We also note that DFH has a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVR currently has a PEG ratio of 3.61.
Another notable valuation metric for DFH is its P/B ratio of 3.98. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NVR has a P/B of 5.64.
Based on these metrics and many more, DFH holds a Value grade of A, while NVR has a Value grade of C.
DFH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DFH is likely the superior value option right now.
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DFH vs. NVR: Which Stock Is the Better Value Option?
Investors interested in stocks from the Building Products - Home Builders sector have probably already heard of Dream Finders Homes Inc. (DFH - Free Report) and NVR (NVR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Dream Finders Homes Inc. is sporting a Zacks Rank of #1 (Strong Buy), while NVR has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that DFH likely has seen a stronger improvement to its earnings outlook than NVR has recently. 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.
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.
DFH currently has a forward P/E ratio of 12.77, while NVR has a forward P/E of 15.94. We also note that DFH has a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVR currently has a PEG ratio of 3.61.
Another notable valuation metric for DFH is its P/B ratio of 3.98. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NVR has a P/B of 5.64.
Based on these metrics and many more, DFH holds a Value grade of A, while NVR has a Value grade of C.
DFH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DFH is likely the superior value option right now.