LEN vs. DHI, PWR, OTIS, HWM, CRH, PHM, NVR, WY, ROL, and WSO
Should you be buying Lennar stock or one of its competitors? The main competitors of Lennar include D.R. Horton (DHI), Quanta Services (PWR), Otis Worldwide (OTIS), Howmet Aerospace (HWM), CRH (CRH), PulteGroup (PHM), NVR (NVR), Weyerhaeuser (WY), Rollins (ROL), and Watsco (WSO). These companies are all part of the "construction" sector.
Lennar (NYSE:LEN) and D.R. Horton (NYSE:DHI) are both large-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, media sentiment, risk, community ranking, profitability, institutional ownership, analyst recommendations, earnings and valuation.
In the previous week, D.R. Horton had 10 more articles in the media than Lennar. MarketBeat recorded 18 mentions for D.R. Horton and 8 mentions for Lennar. D.R. Horton's average media sentiment score of 0.84 beat Lennar's score of 0.42 indicating that D.R. Horton is being referred to more favorably in the news media.
81.1% of Lennar shares are owned by institutional investors. Comparatively, 90.6% of D.R. Horton shares are owned by institutional investors. 9.4% of Lennar shares are owned by insiders. Comparatively, 1.7% of D.R. Horton shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. D.R. Horton pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. Lennar pays out 14.0% of its earnings in the form of a dividend. D.R. Horton pays out 8.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
D.R. Horton has higher revenue and earnings than Lennar. D.R. Horton is trading at a lower price-to-earnings ratio than Lennar, indicating that it is currently the more affordable of the two stocks.
Lennar has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.
Lennar received 223 more outperform votes than D.R. Horton when rated by MarketBeat users. Likewise, 68.33% of users gave Lennar an outperform vote while only 60.06% of users gave D.R. Horton an outperform vote.
Lennar presently has a consensus target price of $163.88, indicating a potential upside of 5.04%. D.R. Horton has a consensus target price of $157.82, indicating a potential upside of 10.16%. Given D.R. Horton's stronger consensus rating and higher possible upside, analysts plainly believe D.R. Horton is more favorable than Lennar.
D.R. Horton has a net margin of 13.39% compared to Lennar's net margin of 11.59%. D.R. Horton's return on equity of 21.32% beat Lennar's return on equity.
Summary
D.R. Horton beats Lennar on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LEN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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