Analyzing New Home (NWHM) & The Competition

New Home (NYSE: NWHM) is one of 24 publicly-traded companies in the “Homebuilding” industry, but how does it weigh in compared to its rivals? We will compare New Home to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares New Home and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Home 2.73% 9.52% 4.26%
New Home Competitors 9.77% 15.04% 8.11%

Valuation and Earnings

This table compares New Home and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
New Home $694.46 million $21.02 million 12.94
New Home Competitors $3.89 billion $231.12 million 509.45

New Home’s rivals have higher revenue and earnings than New Home. New Home is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

55.7% of New Home shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are owned by institutional investors. 24.2% of New Home shares are owned by insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

New Home has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, New Home’s rivals have a beta of 1.52, suggesting that their average stock price is 52% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for New Home and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Home 0 0 0 0 N/A
New Home Competitors 284 1688 1929 38 2.44

As a group, “Homebuilding” companies have a potential downside of 4.37%. Given New Home’s rivals higher possible upside, analysts plainly believe New Home has less favorable growth aspects than its rivals.

Summary

New Home rivals beat New Home on 8 of the 10 factors compared.

New Home Company Profile

The New Home Company Inc. is a homebuilding company. The Company focuses on the design, construction and sale of consumer-driven homes in various metropolitan areas within certain markets in California and Arizona, including coastal Southern California, the San Francisco Bay area, metro Sacramento and the greater Phoenix area. The Company’s segments include homebuilding and fee building. The homebuilding operations consist of divisions in Northern California, Southern California and its division in Arizona, which is established through the purchase of lots in an unconsolidated joint venture. The Company is focused on building and selling homes for its own account. It is focused on identifying sites and creating communities that allow it to design, construct and sell consumer-driven single-family detached and attached homes in major metropolitan areas in coastal Southern California, the San Francisco Bay area, metro Sacramento and the greater Phoenix area.

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