LEN vs. URI, DHI, OTIS, MLM, VMC, CRH, HWM, NVR, PHM, and WY
Should you be buying Lennar stock or one of its competitors? The main competitors of Lennar include United Rentals (URI), D.R. Horton (DHI), Otis Worldwide (OTIS), Martin Marietta Materials (MLM), Vulcan Materials (VMC), CRH (CRH), Howmet Aerospace (HWM), NVR (NVR), PulteGroup (PHM), and Weyerhaeuser (WY). These companies are all part of the "construction" sector.
United Rentals (NYSE:URI) and Lennar (NYSE:LEN) are both large-cap construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their community ranking, risk, profitability, institutional ownership, earnings, valuation, media sentiment, dividends and analyst recommendations.
United Rentals has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
Lennar received 121 more outperform votes than United Rentals when rated by MarketBeat users. Likewise, 68.33% of users gave Lennar an outperform vote while only 64.53% of users gave United Rentals an outperform vote.
United Rentals presently has a consensus target price of $600.79, indicating a potential downside of 8.10%. Lennar has a consensus target price of $163.88, indicating a potential upside of 7.52%. Given United Rentals' stronger consensus rating and higher possible upside, analysts clearly believe Lennar is more favorable than United Rentals.
United Rentals has a net margin of 17.31% compared to United Rentals' net margin of 11.59%. Lennar's return on equity of 36.44% beat United Rentals' return on equity.
Lennar has higher revenue and earnings than United Rentals. Lennar is trading at a lower price-to-earnings ratio than United Rentals, indicating that it is currently the more affordable of the two stocks.
United Rentals pays an annual dividend of $6.52 per share and has a dividend yield of 1.0%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. United Rentals pays out 17.7% of its earnings in the form of a dividend. Lennar pays out 14.0% 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. United Rentals has raised its dividend for 1 consecutive years and Lennar has raised its dividend for 1 consecutive years. Lennar is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, United Rentals had 22 more articles in the media than Lennar. MarketBeat recorded 39 mentions for United Rentals and 17 mentions for Lennar. Lennar's average media sentiment score of 0.94 beat United Rentals' score of 0.33 indicating that United Rentals is being referred to more favorably in the media.
96.3% of United Rentals shares are held by institutional investors. Comparatively, 81.1% of Lennar shares are held by institutional investors. 0.5% of United Rentals shares are held by company insiders. Comparatively, 9.4% of Lennar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
United Rentals and Lennar tied by winning 10 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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