Sekisui House (OTCMKTS:SKHSY – Get Free Report) and Hovnanian Enterprises (NYSE:HOV – Get Free Report) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Profitability
This table compares Sekisui House and Hovnanian Enterprises’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sekisui House | 5.51% | 11.12% | 4.57% |
| Hovnanian Enterprises | 1.92% | 14.14% | 3.73% |
Analyst Recommendations
This is a breakdown of recent recommendations for Sekisui House and Hovnanian Enterprises, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sekisui House | 0 | 1 | 0 | 1 | 3.00 |
| Hovnanian Enterprises | 0 | 3 | 0 | 0 | 2.00 |
Volatility and Risk
Sekisui House has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Hovnanian Enterprises has a beta of 2.28, indicating that its share price is 128% more volatile than the S&P 500.
Institutional and Insider Ownership
0.0% of Sekisui House shares are held by institutional investors. Comparatively, 65.4% of Hovnanian Enterprises shares are held by institutional investors. 22.7% of Hovnanian Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Sekisui House and Hovnanian Enterprises”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sekisui House | $28.07 billion | 0.51 | $1.55 billion | $2.38 | 9.24 |
| Hovnanian Enterprises | $2.98 billion | 0.22 | $63.87 million | $6.53 | 17.05 |
Sekisui House has higher revenue and earnings than Hovnanian Enterprises. Sekisui House is trading at a lower price-to-earnings ratio than Hovnanian Enterprises, indicating that it is currently the more affordable of the two stocks.
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.
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.
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