Beazer Homes USA, Inc. (BZH) vs Hovnanian Enterprises Inc (HOV)

Beazer Homes USA, Inc. and Hovnanian Enterprises Inc are both Residential Construction companies. Beazer Homes USA, Inc. is the larger, with a market value of $890.0M against $654.9M — 1.4× the size. Beazer Homes USA, Inc. has negative trailing earnings, so its P/E is not meaningful; Hovnanian Enterprises Inc trades at 102×. Hovnanian Enterprises Inc grew revenue faster over the last twelve months: −10.1% against −12.8%. Hovnanian Enterprises Inc has the higher net margin (0.21% vs −0.37%) and the higher return on invested capital (4.98% vs −0.96%). Across the 19 metrics below, Hovnanian Enterprises Inc leads on 16 and Beazer Homes USA, Inc. on 3.

Valuation

Metric BZH HOV Residential Construction median
P/E n/m 101.90 13.51
P/S 0.43 0.26 1.02
P/B 0.77 1.08 1.17
Price to free cash flow n/m 3.65 16.79
EV/EBITDA n/m 6.12 10.48
EV/Sales 1.04 0.13 1.31
Earnings yield (0.87%) 0.98% 7.37%
Free cash flow yield (17.31%) 27.39% 5.73%

Profitability

Metric BZH HOV Residential Construction median
Gross margin 12.44% 13.51% 22.30%
Operating margin (1.80%) 1.24% 9.03%
Net margin (0.37%) 0.21% 7.30%
Free cash flow margin (7.35%) 7.16% 8.46%
Return on equity (0.65%) 0.86% 9.84%
Return on assets (0.28%) 0.22% 7.43%
Return on invested capital (0.96%) 4.98% 6.90%

Growth

Metric BZH HOV Residential Construction median
Revenue growth (TTM) (12.75%) (10.10%) (7.37%)
EPS growth (last fiscal year) (66.45%) (76.63%) —
Revenue growth, 5-year CAGR 2.20% 4.91% 8.74%
Net income growth, 5-year CAGR (2.68%) 2.06% 8.43%

Health

Metric BZH HOV Residential Construction median
Debt to equity 1.23 0.04 0.20
Current ratio 14.64 1.46 3.56
Net debt to EBITDA 14.53 (5.03) 0.28

Dividend

Metric BZH HOV Residential Construction median
Dividend yield — — 0.89%
Payout ratio 0.00 0.00 0.00

Size

Metric BZH HOV Residential Construction median
Market cap 890.03m 654.93m 4.18b

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