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TMHC 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 Taylor Morrison Home (TMHC - 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.
Taylor Morrison Home and NVR are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
TMHC currently has a forward P/E ratio of 8.17, while NVR has a forward P/E of 17.48. We also note that TMHC has a PEG ratio of 1.05. 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 1.63.
Another notable valuation metric for TMHC is its P/B ratio of 0.97. 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 6.57.
Based on these metrics and many more, TMHC holds a Value grade of B, while NVR has a Value grade of C.
Both TMHC and NVR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TMHC is the superior value option right now.
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TMHC 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 Taylor Morrison Home (TMHC - 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.
Taylor Morrison Home and NVR are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
TMHC currently has a forward P/E ratio of 8.17, while NVR has a forward P/E of 17.48. We also note that TMHC has a PEG ratio of 1.05. 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 1.63.
Another notable valuation metric for TMHC is its P/B ratio of 0.97. 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 6.57.
Based on these metrics and many more, TMHC holds a Value grade of B, while NVR has a Value grade of C.
Both TMHC and NVR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TMHC is the superior value option right now.