New Home (NWHM) vs. Taylor Morrison Home (TMHC) Head-To-Head Survey
New Home (NYSE: NWHM) and Taylor Morrison Home (NYSE:TMHC) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Risk & Volatility
New Home has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Taylor Morrison Home has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.
This table compares New Home and Taylor Morrison Home’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Home||$694.46 million||0.38||$21.02 million||$0.98||12.94|
|Taylor Morrison Home||$3.55 billion||0.80||$52.61 million||$0.62||38.45|
Taylor Morrison Home has higher revenue and earnings than New Home. New Home is trading at a lower price-to-earnings ratio than Taylor Morrison Home, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
55.7% of New Home shares are owned by institutional investors. Comparatively, 59.2% of Taylor Morrison Home shares are owned by institutional investors. 24.2% of New Home shares are owned by insiders. Comparatively, 2.4% of Taylor Morrison Home shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares New Home and Taylor Morrison Home’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taylor Morrison Home||2.41%||4.18%||2.21%|
This is a breakdown of current ratings for New Home and Taylor Morrison Home, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taylor Morrison Home||0||3||1||0||2.25|
Taylor Morrison Home has a consensus price target of $24.00, indicating a potential upside of 0.67%. Given Taylor Morrison Home’s higher probable upside, analysts clearly believe Taylor Morrison Home is more favorable than New Home.
Taylor Morrison Home beats New Home on 7 of the 13 factors compared between the two stocks.
About New Home
The New Home Company Inc. is a homebuilding company. The Company focuses on the design, construction and sale of consumer-driven homes in various metropolitan areas within certain markets in California and Arizona, including coastal Southern California, the San Francisco Bay area, metro Sacramento and the greater Phoenix area. The Company’s segments include homebuilding and fee building. The homebuilding operations consist of divisions in Northern California, Southern California and its division in Arizona, which is established through the purchase of lots in an unconsolidated joint venture. The Company is focused on building and selling homes for its own account. It is focused on identifying sites and creating communities that allow it to design, construct and sell consumer-driven single-family detached and attached homes in major metropolitan areas in coastal Southern California, the San Francisco Bay area, metro Sacramento and the greater Phoenix area.
About Taylor Morrison Home
Taylor Morrison Home Corporation is a homebuilder, which designs, builds and sells single-family detached and attached homes. The Company is also a land developer, with a portfolio of lifestyle and master-planned communities. Its segments include East, which includes Atlanta, Charlotte, North Florida, Raleigh, Southwest Florida and Tampa; Central, which includes Austin, Dallas, and Houston (each of the Dallas and Houston markets include both a Taylor Morrison division and a Darling Homes division); West, which includes Bay Area, Chicago, Denver, Phoenix, Sacramento and Southern California, and Mortgage Operations, which includes Taylor Morrison Home Funding, LLC (TMHF) and Inspired Title Services, LLC (Inspired Title). It operates under the Taylor Morrison and Darling Homes brand names. The Company also provides financial services to customers through its mortgage subsidiary, TMHF, and title insurance and closing settlement services through its title company, Inspired Title.
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