Contrasting New Home (NWHM) & Its Rivals

New Home (NYSE: NWHM) is one of 23 publicly-traded companies in the “Homebuilding” industry, but how does it contrast to its rivals? We will compare New Home to related companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Volatility & Risk

New Home has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, New Home’s rivals have a beta of 1.51, meaning that their average stock price is 51% more volatile than the S&P 500.

Earnings & Valuation

This table compares New Home and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
New Home $694.46 million $21.02 million 12.74
New Home Competitors $3.89 billion $231.12 million 518.46

New Home’s rivals have higher revenue and earnings than New Home. New Home is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for New Home and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Home 0 0 0 0 N/A
New Home Competitors 267 1629 1889 36 2.44

As a group, “Homebuilding” companies have a potential downside of 0.76%. Given New Home’s rivals higher possible upside, analysts clearly believe New Home has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

55.7% of New Home shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are owned by institutional investors. 24.2% of New Home shares are owned by company insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares New Home and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Home 2.73% 9.52% 4.26%
New Home Competitors 9.91% 15.05% 8.21%

Summary

New Home rivals beat New Home on 8 of the 10 factors compared.

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.

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