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PHM 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 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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. Investors should feel comfortable knowing that PHM 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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 9.10, while NVR has a forward P/E of 15.55. 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 3.19.
Another notable valuation metric for PHM is its P/B ratio of 2.29. 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 5.60.
These are just a few of the metrics contributing to PHM's Value grade of B and NVR's 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 Is the Better Value Option?
Investors interested in Building Products - Home Builders stocks are likely familiar with 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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. Investors should feel comfortable knowing that PHM 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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 9.10, while NVR has a forward P/E of 15.55. 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 3.19.
Another notable valuation metric for PHM is its P/B ratio of 2.29. 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 5.60.
These are just a few of the metrics contributing to PHM's Value grade of B and NVR's 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.