Hovnanian Enterprises Inc (HOV) vs Legacy Housing Corporation (LEGH)

Hovnanian Enterprises Inc and Legacy Housing Corporation are both Residential Construction companies. Legacy Housing Corporation is the larger, with a market value of $716.1M against $614.0M — 1.2× the size. Legacy Housing Corporation trades at the lower P/E: 11.5× against 118×. Legacy Housing Corporation grew revenue faster over the last twelve months: 15.6% against −10.1%. Legacy Housing Corporation has the higher net margin (30.1% vs 0.21%) and the higher return on invested capital (8.22% vs 4.98%). Across the 22 metrics below, Legacy Housing Corporation leads on 12 and Hovnanian Enterprises Inc on 10.

Valuation

Metric HOV LEGH Residential Construction median
P/E 117.83 11.47 15.45
P/S 0.24 3.45 1.32
P/B 0.98 1.24 1.24
Price to free cash flow 3.33 16.57 21.26
EV/EBITDA 5.02 11.48 12.52
EV/Sales 0.10 3.31 1.48
Earnings yield 0.85% 8.72% 6.38%
Free cash flow yield 30.00% 6.03% 4.64%

Profitability

Metric HOV LEGH Residential Construction median
Gross margin 13.51% 0.00% 19.15%
Operating margin 1.24% 34.78% 7.50%
Net margin 0.21% 30.06% 6.72%
Free cash flow margin 7.16% 26.05% 8.39%
Return on equity 0.86% 11.36% 11.56%
Return on assets 0.22% 10.51% 6.99%
Return on invested capital 4.98% 8.22% 4.98%

Growth

Metric HOV LEGH Residential Construction median
Revenue growth (TTM) (10.10%) 15.61% (6.00%)
EPS growth (last fiscal year) (76.63%) (29.84%) (25.22%)
Revenue growth, 5-year CAGR 4.91% (1.42%) 8.74%
Net income growth, 5-year CAGR 2.06% 1.93% 8.25%

Health

Metric HOV LEGH Residential Construction median
Debt to equity 0.04 0.00 0.17
Current ratio 1.46 3.25 3.25
Net debt to EBITDA (5.03) (0.15) 0.37

Dividend

Metric HOV LEGH Residential Construction median
Dividend yield — — 1.15%
Payout ratio — — 0.18

Size

Metric HOV LEGH Residential Construction median
Market cap 614.02m 716.10m 4.72b

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