Hovnanian Enterprises Inc (HOV) vs M/I Homes, Inc. (MHO)

Hovnanian Enterprises Inc and M/I Homes, Inc. are both Residential Construction companies. M/I Homes, Inc. is the larger, with a market value of $3.5B against $654.9M — 5.3× the size. M/I Homes, Inc. trades at the lower P/E: 11.4× against 102×. M/I Homes, Inc. grew revenue faster over the last twelve months: −4.99% against −10.1%. M/I Homes, Inc. has the higher net margin (7.44% vs 0.21%) and the higher return on invested capital (7.22% vs 4.98%). Across the 22 metrics below, M/I Homes, Inc. leads on 13 and Hovnanian Enterprises Inc on 9.

Valuation

Metric HOV MHO Residential Construction median
P/E 101.90 11.43 13.51
P/S 0.26 0.84 1.02
P/B 1.08 1.10 1.17
Price to free cash flow 3.65 17.36 16.79
EV/EBITDA 6.12 9.03 10.48
EV/Sales 0.13 0.89 1.31
Earnings yield 0.98% 8.75% 7.37%
Free cash flow yield 27.39% 5.76% 5.73%

Profitability

Metric HOV MHO Residential Construction median
Gross margin 13.51% 22.60% 22.30%
Operating margin 1.24% 9.32% 9.03%
Net margin 0.21% 7.44% 7.30%
Free cash flow margin 7.16% 4.81% 8.46%
Return on equity 0.86% 10.06% 9.84%
Return on assets 0.22% 6.61% 7.43%
Return on invested capital 4.98% 7.22% 6.90%

Growth

Metric HOV MHO Residential Construction median
Revenue growth (TTM) (10.10%) (4.99%) (7.37%)
EPS growth (last fiscal year) (76.63%) (25.22%) —
Revenue growth, 5-year CAGR 4.91% 7.72% 8.74%
Net income growth, 5-year CAGR 2.06% 10.93% 8.43%

Health

Metric HOV MHO Residential Construction median
Debt to equity 0.04 0.29 0.20
Current ratio 1.46 7.65 3.56
Net debt to EBITDA (5.03) 0.54 0.28

Dividend

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

Size

Metric HOV MHO Residential Construction median
Market cap 654.93m 3.48b 4.18b

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