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HOV vs TM

HOV
Hovnanian Enterprises, Inc.
BEARISH
Price
$115.98
Market Cap
$688.7M
Sector
Consumer Cyclical
AI Confidence
85%
TM
Toyota Motor Corporation
NEUTRAL
Price
$209.75
Market Cap
$273.37B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HOV
17.93
TM
11.84
Forward P/E
HOV
27.55
TM
13.29
P/B Ratio
HOV
0.98
TM
11.21
P/S Ratio
HOV
0.23
TM
0.01
EV/EBITDA
HOV
13.21
TM
4.71

Profitability

Gross Margin
HOV
15.16%
TM
17.6%
Operating Margin
HOV
2.05%
TM
8.85%
Profit Margin
HOV
1.93%
TM
7.32%
ROE
HOV
6.86%
TM
10.03%
ROA
HOV
2.39%
TM
2.73%

Growth

Revenue Growth
HOV
-6.2%
TM
8.6%
Earnings Growth
HOV
-26.8%
TM
-42.3%

Financial Health

Debt/Equity
HOV
1.24
TM
1.05
Current Ratio
HOV
4.57
TM
1.26
Quick Ratio
HOV
0.79
TM
1.03

Dividends

Dividend Yield
HOV
--
TM
2.78%
Payout Ratio
HOV
0.0%
TM
33.2%

AI Verdict

HOV BEARISH

HOV presents a precarious profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a complete lack of positive technical momentum. While the stock trades below its Graham Number ($131.04), suggesting defensive value, it is severely overvalued relative to its growth-based intrinsic value ($45.29) and the sole analyst target price of $74.00. The company is experiencing significant contraction, with YoY earnings growth plummeting by 26.8% and a forward P/E that is higher than the current P/E, signaling expected earnings declines. Thin profit margins and erratic historical earnings surprises further undermine the investment thesis.

Strengths
Trading slightly below book value (P/B 0.98)
Very low Price-to-Sales ratio (0.23)
Strong Current Ratio (4.57) indicating short-term liquidity
Risks
Severe earnings contraction (YoY EPS Growth -107%)
Negative revenue growth (-6.20% YoY)
Extremely thin net profit margins (1.93%)
TM NEUTRAL

TM shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Attractive valuation with P/E of 11.8
Risks
Premium vs Graham Number ($86.36)

Compare Another Pair

HOV vs TM: Head-to-Head Comparison

This page compares Hovnanian Enterprises, Inc. (HOV) and Toyota Motor Corporation (TM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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