Hovnanian Enterprises (NYSE:HOV – Get Free Report) and Loma Negra Compania Industrial Argentina (NYSE:LOMA – Get Free Report) are both small-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Valuation & Earnings
This table compares Hovnanian Enterprises and Loma Negra Compania Industrial Argentina”s gross 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 | 0.21 | $242.01 million | $28.55 | 3.75 |
| Loma Negra Compania Industrial Argentina | $767.70 million | 1.61 | $169.19 million | $0.84 | 12.58 |
Institutional and Insider Ownership
65.4% of Hovnanian Enterprises shares are owned by institutional investors. Comparatively, 19.3% of Loma Negra Compania Industrial Argentina shares are owned by institutional investors. 19.8% of Hovnanian Enterprises shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Hovnanian Enterprises has a beta of 2.13, suggesting that its stock price is 113% more volatile than the S&P 500. Comparatively, Loma Negra Compania Industrial Argentina has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Profitability
This table compares Hovnanian Enterprises and Loma Negra Compania Industrial Argentina’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hovnanian Enterprises | 7.03% | 33.18% | 8.41% |
| Loma Negra Compania Industrial Argentina | 14.52% | 12.51% | 6.95% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Hovnanian Enterprises and Loma Negra Compania Industrial Argentina, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hovnanian Enterprises | 1 | 1 | 0 | 0 | 1.50 |
| Loma Negra Compania Industrial Argentina | 0 | 0 | 4 | 0 | 3.00 |
Hovnanian Enterprises currently has a consensus price target of $120.00, suggesting a potential upside of 12.18%. Loma Negra Compania Industrial Argentina has a consensus price target of $14.80, suggesting a potential upside of 40.02%. Given Loma Negra Compania Industrial Argentina’s stronger consensus rating and higher probable upside, analysts clearly believe Loma Negra Compania Industrial Argentina is more favorable than Hovnanian Enterprises.
Summary
Hovnanian Enterprises beats Loma Negra Compania Industrial Argentina on 8 of the 14 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 Loma Negra Compania Industrial Argentina
Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.
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