Analyzing Hovnanian Enterprises (NYSE:HOV) & SharkNinja (NYSE:SN)

SharkNinja (NYSE:SN) and Hovnanian Enterprises (NYSE:HOV) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Risk and Volatility

SharkNinja has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Hovnanian Enterprises has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500.

Insider and Institutional Ownership

34.8% of SharkNinja shares are owned by institutional investors. Comparatively, 65.4% of Hovnanian Enterprises shares are owned by institutional investors. 40.8% of SharkNinja shares are owned by company insiders. Comparatively, 22.7% of Hovnanian Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SharkNinja and Hovnanian Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SharkNinja	0	1	12	0	2.92
Hovnanian Enterprises	2	3	0	0	1.60

SharkNinja currently has a consensus target price of $188.59, suggesting a potential upside of 4.04%. Hovnanian Enterprises has a consensus target price of $97.00, suggesting a potential downside of 26.11%. Given SharkNinja’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SharkNinja is more favorable than Hovnanian Enterprises.

Earnings & Valuation

This table compares SharkNinja and Hovnanian Enterprises”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SharkNinja	$6.91 billion	3.70	$701.37 million	$4.90	36.99
Hovnanian Enterprises	$2.98 billion	0.26	$63.87 million	$0.95	138.19

SharkNinja has higher revenue and earnings than Hovnanian Enterprises. SharkNinja is trading at a lower price-to-earnings ratio than Hovnanian Enterprises, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SharkNinja and Hovnanian Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SharkNinja	10.06%	27.79%	14.19%
Hovnanian Enterprises	0.64%	8.60%	2.19%

Summary

SharkNinja beats Hovnanian Enterprises on 11 of the 14 factors compared between the two stocks.

About SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas. The company markets and builds homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans, title insurance, and homeowner’s insurance services. The company was founded in 1959 and is headquartered in Matawan, New Jersey.