Hovnanian Enterprises Inc (HOV) vs KB Home (KBH)

Hovnanian Enterprises Inc and KB Home are both Residential Construction companies. KB Home is the larger, with a market value of $2.7B against $602.7M — 4.4× the size. KB Home trades at the lower P/E: 12.0× against 86.1×. Hovnanian Enterprises Inc grew revenue faster over the last twelve months: −10.1% against −20.8%. KB Home has the higher net margin (4.38% vs 0.21%) and the lower return on invested capital (4.60% vs 4.98%). Across the 22 metrics below, KB Home leads on 13 and Hovnanian Enterprises Inc on 9.

Valuation

Metric HOV KBH Residential Construction median
P/E 86.08 11.96 13.21
P/S 0.22 0.51 0.96
P/B 0.91 0.69 1.07
Price to free cash flow 3.08 91.90 15.63
EV/EBITDA 4.16 13.31 10.53
EV/Sales 0.09 0.80 1.27
Earnings yield 1.16% 8.36% 7.24%
Free cash flow yield 32.43% 1.09% 6.23%

Profitability

Metric HOV KBH Residential Construction median
Gross margin 13.51% 13.69% 22.30%
Operating margin 1.24% 5.18% 9.03%
Net margin 0.21% 4.38% 7.30%
Free cash flow margin 7.16% 0.55% 8.46%
Return on equity 0.86% 5.89% 9.84%
Return on assets 0.22% 3.25% 7.43%
Return on invested capital 4.98% 4.60% 6.90%

Growth

Metric HOV KBH Residential Construction median
Revenue growth (TTM) (10.10%) (20.80%) (7.66%)
EPS growth (last fiscal year) (76.63%) (27.22%) (25.22%)
Revenue growth, 5-year CAGR 4.91% 8.31% 8.74%
Net income growth, 5-year CAGR 2.06% 7.65% 8.43%

Health

Metric HOV KBH Residential Construction median
Debt to equity 0.04 0.00 0.20
Current ratio 1.46 2.07 3.56
Net debt to EBITDA (5.03) 2.56 0.28

Dividend

Metric HOV KBH Residential Construction median
Dividend yield — 2.31% 1.29%
Payout ratio — 0.28 0.17

Size

Metric HOV KBH Residential Construction median
Market cap 602.74m 2.65b 3.93b

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