Hovnanian Enterprises, Inc. HOV

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
35/100
Developing

Ranked against 21 peers in Residential Construction

About Hovnanian Enterprises, Inc.

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, move-up buyers, luxury buyers, active … Full HOV analysis →

Key strengths

  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.95), suggesting sticky customer base.

Key risks

  • ROIC Below WACC or Peers ROIC at 23.8th percentile suggests inefficient capital deployment.
  • Commodity Pressure / Weak Differentiation Gross margin at 19.0th percentile with high volatility suggests weak pricing power or commoditized products.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
28
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where HOV ranks in Residential Construction

Hovnanian Enterprises, Inc. ranks #19 of 22 scored companies in Residential Construction by moat score — the top 86%. The widest moat in the group is PulteGroup, Inc. (PHM) at 80/100.

# Company Moat score Rating
14 Lennar Corporation LEN 46/100 Developing
15 Tri Pointe Homes, Inc. TPH 45/100 Developing
16 Lennar Corporation LEN-B 44/100 Developing
17 Dream Finders Homes, Inc. DFH 37/100 Developing
18 Beazer Homes USA, Inc. BZH 37/100 Developing
19 Hovnanian Enterprises, Inc. HOV 35/100 Developing
20 LGI Homes, Inc. LGIH 24/100 Weak
21 United Homes Group, Inc UHG 17/100 Weak
22 SPRINGVIEW HOLDINGS LTD SPHL 9/100 Weak

See every General Corporate company ranked by moat score →

How HOV scores on the Corporate Default defenses

Pricing Power

Score 28 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 31 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 76 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 15 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 35 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 31 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding HOV's moat

What is Hovnanian Enterprises, Inc.'s moat score?

Hovnanian Enterprises, Inc. (HOV) scores 35 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #19 of 22 scored companies in Residential Construction, the top 86%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 21 companies in Residential Construction. Its strongest defense is Customer Stickiness (76/100) and its weakest is Capital Efficiency (15/100).

How does Hovnanian Enterprises, Inc. compare with other Residential Construction companies?

Hovnanian Enterprises, Inc. ranks #19 of 22 scored companies in Residential Construction by moat score. The widest moat in Residential Construction is PulteGroup, Inc. (PHM) at 80/100. The companies ranked closest are Beazer Homes USA, Inc. (BZH) at 37 just above it and LGI Homes, Inc. (LGIH) at 24 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 21 companies in Residential Construction. The defenses are then weighted to produce the overall score out of 100.

Why is Hovnanian Enterprises, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Hovnanian Enterprises, Inc.?

The Corporate Default template measures 6 defenses, and HOV scores: Pricing Power (28), Cost Advantage (31), Customer Stickiness (76), Capital Efficiency (15), Resilience (35), Scale & Market Position (31). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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