Taylor Wimpey (OTCMKTS:TWODY) vs. NVR (NYSE:NVR) Critical Contrast

NVR (NYSE:NVR) and Taylor Wimpey (OTCMKTS:TWODY) are both construction companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

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

Valuation and Earnings

This table compares NVR and Taylor Wimpey”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVR	$10.48 billion	2.02	$1.68 billion	$455.63	16.36
Taylor Wimpey	$4.37 billion	1.09	$433.99 million	N/A	N/A

NVR has higher revenue and earnings than Taylor Wimpey.

Volatility & Risk

NVR has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Taylor Wimpey has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for NVR and Taylor Wimpey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVR	0	3	1	0	2.25
Taylor Wimpey	1	4	0	1	2.17

NVR currently has a consensus price target of $8,366.67, indicating a potential upside of 12.27%. Given NVR’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NVR is more favorable than Taylor Wimpey.

Profitability

This table compares NVR and Taylor Wimpey’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%
Taylor Wimpey	N/A	N/A	N/A

Summary

NVR beats Taylor Wimpey on 11 of the 13 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 Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.