PHM vs. NVR: Which Stock Is the Better Value Option?

Core Viewpoint - PulteGroup (PHM) is currently viewed as a better value opportunity compared to NVR, based on various valuation metrics and earnings outlook improvements [1][3]. Valuation Metrics - PHM has a forward P/E ratio of 9.10, significantly lower than NVR's forward P/E of 15.55 [2]. - The PEG ratio for PHM is 0.52, indicating a more favorable valuation relative to its expected EPS growth, while NVR's PEG ratio stands at 3.19 [2]. - PHM's P/B ratio is 2.29, compared to NVR's P/B ratio of 5.60, suggesting that PHM is undervalued relative to its book value [2]. Earnings Outlook - PHM has experienced stronger improvements in its earnings outlook compared to NVR, which is reflected in its higher Zacks Rank of 1 (Strong Buy) versus NVR's 3 (Hold) [1][3]. - The overall valuation metrics and estimate revision activity favor PHM, leading to a Value grade of B for PHM and a Value grade of C for NVR [3].