NVR (NYSE: NVR) and M/I Homes (NYSE:MHO) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares NVR and M/I Homes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NVR 9.22% 38.23% 19.86%
M/I Homes 3.57% 12.99% 5.11%

Valuation & Earnings

This table compares NVR and M/I Homes’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NVR $6.12 billion 1.95 $800.07 million $136.13 23.43
M/I Homes $1.83 billion 0.40 $132.36 million $2.12 13.62

NVR has higher revenue and earnings than M/I Homes. M/I Homes is trading at a lower price-to-earnings ratio than NVR, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for NVR and M/I Homes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NVR 0 3 2 0 2.40
M/I Homes 0 1 2 0 2.67

NVR presently has a consensus price target of $2,645.00, suggesting a potential downside of 17.09%. M/I Homes has a consensus price target of $32.00, suggesting a potential upside of 10.84%. Given M/I Homes’ stronger consensus rating and higher probable upside, analysts plainly believe M/I Homes is more favorable than NVR.

Insider and Institutional Ownership

80.2% of NVR shares are held by institutional investors. 11.3% of NVR shares are held by insiders. Comparatively, 4.7% of M/I Homes shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

NVR has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, M/I Homes has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Summary

NVR beats M/I Homes on 10 of the 13 factors compared between the two stocks.

NVR Company Profile

NVR, Inc. is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. The Company’s segments are Homebuilding Mid Atlantic, Homebuilding North East, Homebuilding Mid East, Homebuilding South East and Mortgage Banking. Its Homebuilding Mid Atlantic segment operates in various geographic regions, which include Maryland, Virginia, West Virginia, Delaware and Washington, District of Columbia (D.C.). Its Homebuilding North East segment operates in various geographic regions, which include New Jersey and Eastern Pennsylvania. Its Homebuilding Mid East segment operates in various geographic regions, which include New York, Ohio, Indiana and Illinois, The Homebuilding South East segment operates in various geographic regions, which include North Carolina, South Carolina, Florida and Tennessee. The Mortgage Banking segment provides mortgage-related services to home building customers through its mortgage banking operations.

M/I Homes Company Profile

M/I Homes, Inc. is a builder of single-family homes. The Company consists of two operations: homebuilding and financial services. It operates through Midwest homebuilding, Southern homebuilding, Mid-Atlantic homebuilding and financial services operations segments. The Company and its subsidiaries are engaged primarily in the construction and sale of single-family residential homes in 15 markets: Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Tampa, Orlando and Sarasota, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C. The Company’s financial services operations support its homebuilding operations by providing mortgage loans and title services to the customers of its homebuilding operations. It markets and sells homes primarily under the M/I Homes brand (M/I Homes and Showcase Collection (by M/I)).

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