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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 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
PulteGroup and NVR are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that PHM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
PHM currently has a forward P/E ratio of 9.21, while NVR has a forward P/E of 15.60. We also note that PHM has a PEG ratio of 0.52. 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 3.20.
Another notable valuation metric for PHM is its P/B ratio of 2.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVR has a P/B of 5.62.
Based on these metrics and many more, PHM holds a Value grade of B, while NVR has a Value grade of C.
PHM has seen stronger estimate revision activity and sports more attractive valuation metrics than NVR, so it seems like value investors will conclude that PHM is the superior 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 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
PulteGroup and NVR are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that PHM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
PHM currently has a forward P/E ratio of 9.21, while NVR has a forward P/E of 15.60. We also note that PHM has a PEG ratio of 0.52. 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 3.20.
Another notable valuation metric for PHM is its P/B ratio of 2.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVR has a P/B of 5.62.
Based on these metrics and many more, PHM holds a Value grade of B, while NVR has a Value grade of C.
PHM has seen stronger estimate revision activity and sports more attractive valuation metrics than NVR, so it seems like value investors will conclude that PHM is the superior option right now.