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DHI vs. NVR: Which Stock Is the Better Value Option?
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Investors interested in Building Products - Home Builders stocks are likely familiar with D.R. Horton (DHI - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
D.R. Horton has a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that DHI 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 try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DHI currently has a forward P/E ratio of 14.37, while NVR has a forward P/E of 19.22. We also note that DHI has a PEG ratio of 3.59. 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 11.17.
Another notable valuation metric for DHI is its P/B ratio of 2.05. 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 6.11.
These are just a few of the metrics contributing to DHI's Value grade of B and NVR's Value grade of C.
DHI sticks out from NVR in both our Zacks Rank and Style Scores models, so value investors will likely feel that DHI is the better option right now.
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DHI vs. NVR: Which Stock Is the Better Value Option?
Investors interested in Building Products - Home Builders stocks are likely familiar with D.R. Horton (DHI - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
D.R. Horton has a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that DHI 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 try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DHI currently has a forward P/E ratio of 14.37, while NVR has a forward P/E of 19.22. We also note that DHI has a PEG ratio of 3.59. 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 11.17.
Another notable valuation metric for DHI is its P/B ratio of 2.05. 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 6.11.
These are just a few of the metrics contributing to DHI's Value grade of B and NVR's Value grade of C.
DHI sticks out from NVR in both our Zacks Rank and Style Scores models, so value investors will likely feel that DHI is the better option right now.