Financial Review: Everus (NYSE:ECG) and Hovnanian Enterprises (NYSE:HOV)

Hovnanian Enterprises (NYSE:HOV) and Everus (NYSE:ECG) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hovnanian Enterprises and Everus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hovnanian Enterprises	0	2	0	0	2.00
Everus	0	2	2	0	2.50

Hovnanian Enterprises presently has a consensus price target of $155.00, indicating a potential upside of 19.45%. Everus has a consensus price target of $67.67, indicating a potential downside of 1.88%. Given Hovnanian Enterprises’ higher possible upside, equities analysts plainly believe Hovnanian Enterprises is more favorable than Everus.

Institutional and Insider Ownership

65.4% of Hovnanian Enterprises shares are owned by institutional investors. 17.7% of Hovnanian Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Hovnanian Enterprises and Everus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hovnanian Enterprises	$3.00 billion	0.26	$242.01 million	$32.11	4.04
Everus	$2.73 billion	1.29	$137.23 million	N/A	N/A

Hovnanian Enterprises has higher revenue and earnings than Everus.

Profitability

This table compares Hovnanian Enterprises and Everus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hovnanian Enterprises	8.05%	46.58%	10.04%
Everus	N/A	N/A	N/A

Summary

Hovnanian Enterprises beats Everus on 8 of the 11 factors compared between the two stocks.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas. The company markets and builds homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans, title insurance, and homeowner’s insurance services. The company was founded in 1959 and is headquartered in Matawan, New Jersey.

About Everus

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.