Sekisui House (OTCMKTS:SKHSY) and NVR (NYSE:NVR) Financial Contrast

NVR (NYSE:NVR) and Sekisui House (OTCMKTS:SKHSY) are both large-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NVR and Sekisui House, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVR	0	3	1	0	2.25
Sekisui House	0	1	0	0	2.00

NVR currently has a consensus price target of $8,366.67, suggesting a potential upside of 17.16%. Given NVR’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NVR is more favorable than Sekisui House.

Profitability

This table compares NVR and Sekisui House’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NVR	14.00%	35.81%	23.23%
Sekisui House	4.67%	10.07%	4.16%

Earnings and Valuation

This table compares NVR and Sekisui House”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVR	$10.48 billion	1.94	$1.68 billion	$455.63	15.67
Sekisui House	$26.67 billion	0.53	$1.44 billion	$2.04	10.37

NVR has higher earnings, but lower revenue than Sekisui House. Sekisui House is trading at a lower price-to-earnings ratio than NVR, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

NVR has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Sekisui House has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Insider & Institutional Ownership

83.7% of NVR shares are owned by institutional investors. Comparatively, 0.0% of Sekisui House shares are owned by institutional investors. 7.0% of NVR shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

NVR beats Sekisui House on 13 of the 14 factors compared between the two stocks.

About NVR

NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers. It also provides various mortgage related services to its homebuilding customers, as well as brokers title insurance; performs title searches in connection with mortgage loan closings; and sells mortgage loans to investors in the secondary markets on a servicing released basis. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, Georgia, South Carolina, Florida, Tennessee, and Washington, D.C. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia.

About Sekisui House

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. The company operates through Custom Detached Houses, Rental Housing, Architectural/Civil Engineering, Remodeling, Real Estate Management Fees, Houses For Sale, Condominiums, Urban Redevelopment, and Overseas segments. It also engages in contracting of design and construction of custom detached houses, rental housing, office building, commercial buildings, and other properties; construction of reinforced concrete rental housing and commercial buildings; contracting of design and construction of civil engineering works; remodeling and renovation of houses; subleasing, management, operation, and brokerage of real estate; sale of houses and residential land; and sales of condominiums. Sekisui House, Ltd. was incorporated in 1929 and is headquartered in Osaka, Japan.