Head to Head Analysis: Hovnanian Enterprises, Inc. PFD DEP1/1000A (NASDAQ:HOVNP) versus PulteGroup (NYSE:PHM)

PulteGroup (NYSE:PHM) and Hovnanian Enterprises, Inc. PFD DEP1/1000A (NASDAQ:HOVNP) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares PulteGroup and Hovnanian Enterprises, Inc. PFD DEP1/1000A’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PulteGroup	11.62%	15.21%	10.89%
Hovnanian Enterprises, Inc. PFD DEP1/1000A	N/A	N/A	N/A

Valuation & Earnings

This table compares PulteGroup and Hovnanian Enterprises, Inc. PFD DEP1/1000A”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PulteGroup	$17.31 billion	1.44	$2.22 billion	$9.79	13.57
Hovnanian Enterprises, Inc. PFD DEP1/1000A	$2.92 billion	N/A	N/A	N/A	N/A

PulteGroup has higher revenue and earnings than Hovnanian Enterprises, Inc. PFD DEP1/1000A.

Insider and Institutional Ownership

89.9% of PulteGroup shares are held by institutional investors. 0.7% of PulteGroup shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for PulteGroup and Hovnanian Enterprises, Inc. PFD DEP1/1000A, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PulteGroup	0	7	10	0	2.59
Hovnanian Enterprises, Inc. PFD DEP1/1000A	0	0	0	0	0.00

PulteGroup currently has a consensus price target of $143.14, suggesting a potential upside of 7.73%. Given PulteGroup’s stronger consensus rating and higher probable upside, equities analysts plainly believe PulteGroup is more favorable than Hovnanian Enterprises, Inc. PFD DEP1/1000A.

Dividends

PulteGroup pays an annual dividend of $1.04 per share and has a dividend yield of 0.8%. Hovnanian Enterprises, Inc. PFD DEP1/1000A pays an annual dividend of $1.91 per share and has a dividend yield of 9.7%. PulteGroup pays out 10.6% of its earnings in the form of a dividend. PulteGroup has raised its dividend for 7 consecutive years.

Summary

PulteGroup beats Hovnanian Enterprises, Inc. PFD DEP1/1000A on 10 of the 12 factors compared between the two stocks.

About PulteGroup

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names. In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

About Hovnanian Enterprises, Inc. PFD DEP1/1000A

for a complete listing of all our available career opportunities, please visit khov.com/careers. hovnanian enterprises, inc., founded in 1959 by kevork s. hovnanian, is headquartered in red bank, new jersey. the company is one of the nation’s largest homebuilders with operations in arizona, california, delaware, florida, georgia, illinois, maryland, new jersey, ohio, pennsylvania, south carolina, texas, virginia, washington, d.c. and west virginia. hovnanian is highly diversified by product type, selling a wide array of attached and detached home styles to buyers ranging from first-time purchasers to luxury buyers. as the developer of k. hovnanian’s® four seasons communities, the company is also one of the nation’s largest builders of active lifestyle communities. the company’s homes are marketed and sold under the trade names k. hovnanian® homes, brighton homes® and parkwood builders.