Dream Finders Homes, Inc. (DFH) vs Hovnanian Enterprises Inc (HOV)

Dream Finders Homes, Inc. and Hovnanian Enterprises Inc are both Residential Construction companies. Dream Finders Homes, Inc. is the larger, with a market value of $1.0B against $654.9M — 1.5× the size. Dream Finders Homes, Inc. trades at the lower P/E: 7.8× against 102×. Hovnanian Enterprises Inc grew revenue faster over the last twelve months: −10.1% against −12.2%. Dream Finders Homes, Inc. has the higher net margin (3.22% vs 0.21%) and the higher return on invested capital (6.33% vs 4.98%). Across the 21 metrics below, Dream Finders Homes, Inc. leads on 13 and Hovnanian Enterprises Inc on 8.

Valuation

Metric DFH HOV Residential Construction median
P/E 7.79 101.90 13.51
P/S 0.25 0.26 1.02
P/B 0.72 1.08 1.17
Price to free cash flow n/m 3.65 16.79
EV/EBITDA 6.49 6.12 10.48
EV/Sales 0.33 0.13 1.31
Earnings yield 12.83% 0.98% 7.37%
Free cash flow yield (15.69%) 27.39% 5.73%

Profitability

Metric DFH HOV Residential Construction median
Gross margin 15.79% 13.51% 22.30%
Operating margin 4.34% 1.24% 9.03%
Net margin 3.22% 0.21% 7.30%
Free cash flow margin (3.91%) 7.16% 8.46%
Return on equity 9.62% 0.86% 9.84%
Return on assets 3.50% 0.22% 7.43%
Return on invested capital 6.33% 4.98% 6.90%

Growth

Metric DFH HOV Residential Construction median
Revenue growth (TTM) (12.17%) (10.10%) (7.37%)
EPS growth (last fiscal year) (35.93%) (76.63%) —
Revenue growth, 5-year CAGR 30.69% 4.91% 8.74%
Net income growth, 5-year CAGR 20.83% 2.06% 8.43%

Health

Metric DFH HOV Residential Construction median
Debt to equity 0.41 0.04 0.20
Current ratio 1.44 1.46 3.56
Net debt to EBITDA 1.03 (5.03) 0.28

Dividend

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

Size

Metric DFH HOV Residential Construction median
Market cap 1.00b 654.93m 4.18b

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