Head to Head Comparison: Hovnanian Enterprises (NYSE:HOV) & Everus (NYSE:ECG)

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

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Everus and Hovnanian Enterprises, as reported by MarketBeat.

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

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

Earnings and Valuation

This table compares Everus and Hovnanian Enterprises”s top-line revenue, earnings per share and valuation.

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

Hovnanian Enterprises has higher revenue and earnings than Everus.

Profitability

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

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

Summary

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

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.

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.