The Taylor Wimpey share price: value or not?

first_imgSimply click below to discover how you can take advantage of this. FREE REPORT: Why this £5 stock could be set to surge Our 6 ‘Best Buys Now’ Shares The government has been giving a lot of support to housebuilders to get them through the last year. A freeze on Stamp Duty is the most recent enticement for buyers and one that’s likely to push up house prices further.One housebuilder that reported results recently is FTSE 100-listed Taylor Wimpey (LSE: TW). So have government initiatives helped it? Yes, but not completely.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Taylor Wimpey resultsFull-year revenue at the firm fell 35.7% to £2.8bn. This reflected reduced completions because of the pandemic.Apart from the fall in revenue however, there were more positive signs for the future. Its overall average selling price rose to £288,000. In 2019 it was £269,000. More momentum like this will feed straight through to the bottom line.Also, net cash rose to £719.4m from £545.7m. The business also accelerated land purchases, which means it has plenty of scope to develop further.Before the pandemic, housebuilders were prodigious dividend-payers. For me, the dividend is still a key attraction when it comes to investing in shares within the industry. As such I was pleased to see that a final dividend of 4.14p was announced.Taylor Wimpey share priceThe results above are generally positive. The company is operating well and that translates into good profits now and, in my opinion, into the future as well.That partly explains why the share price is up 15% so far this year. Yet despite the rise, I think the housebuilders generally are good value and Taylor Wimpey, in my eyes, is no exception.Of course, the risks to Taylor Wimpey are that government withdraws support from the housing market too quickly, or that banks tighten up on mortgage criteria, reducing demand for houses and causing prices to fall.A FTSE 100 peerThere’s a sector peer I like more. Persimmon (LSE: PSN) is another FTSE 100 housebuilder. The company has a new CEO, who has joined from transport company National Express. This will hopefully take it through its next stage of recovery from building quality scandals that have dogged it in the past.Personally, I think Persimmon’s shares are even better value than Taylor Wimpey’s. For one, its revenue has fallen far less, with a decline of 8.8% reported in its most recent results. I also expect Persimmon to be more aggressive in rewarding shareholders with dividends over the course of 2021.How so? Well, Persimmon has an even stronger cash position, possibly because it has been buying up less land through this uncertain time. It has around £1.2bn of net cash.The group is expecting completion volumes to recover nearly to 2019 levels during the first half of the year.A risk with this share is that its reputation is tarnished for a long time. Another is its reliance on government support for the housing market and relative expensiveness compared to peers when you look at the price-to-book value.With Persimmon shares only up 8% so far this year, I think it has some room to catch up with Taylor Wimpey and the underperformance will be rectified. I see little reason why its shares shouldn’t have risen by the same amount, if not more than its rival. That’s why I’m more likely to add more Persimmon shares to my own portfolio.  I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Enter Your Email Addresscenter_img See all posts by Andy Ross Get the full details on this £5 stock now – while your report is free. Andy Ross owns shares in Persimmon. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The Taylor Wimpey share price: value or not? Andy Ross | Friday, 19th March, 2021 | More on: NEX PSN TW Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. 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