URI vs. LEN, DHI, OTIS, MLM, CRH, VMC, HWM, NVR, PHM, and WY
Should you be buying United Rentals stock or one of its competitors? The main competitors of United Rentals include Lennar (LEN), D.R. Horton (DHI), Otis Worldwide (OTIS), Martin Marietta Materials (MLM), CRH (CRH), Vulcan Materials (VMC), Howmet Aerospace (HWM), NVR (NVR), PulteGroup (PHM), and Weyerhaeuser (WY). These companies are all part of the "construction" sector.
Lennar (NYSE:LEN) and United Rentals (NYSE:URI) are both large-cap consumer cyclical companies, but which is the better business? We will compare the two businesses based on the strength of their community ranking, profitability, valuation, institutional ownership, dividends, risk, media sentiment, analyst recommendations and earnings.
In the previous week, United Rentals had 16 more articles in the media than Lennar. MarketBeat recorded 36 mentions for United Rentals and 20 mentions for Lennar. Lennar's average media sentiment score of 1.05 beat United Rentals' score of 0.33 indicating that United Rentals is being referred to more favorably in the news media.
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 presently has a consensus price target of $163.88, suggesting a potential upside of 7.52%. United Rentals has a consensus price target of $600.79, suggesting a potential downside of 8.10%. Given United Rentals' stronger consensus rating and higher possible upside, analysts plainly believe Lennar is more favorable than United Rentals.
81.1% of Lennar shares are held by institutional investors. Comparatively, 96.3% of United Rentals shares are held by institutional investors. 9.4% of Lennar shares are held by insiders. Comparatively, 0.5% of United Rentals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock 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%. United Rentals pays an annual dividend of $6.52 per share and has a dividend yield of 1.0%. Lennar pays out 14.0% of its earnings in the form of a dividend. United Rentals pays out 17.7% 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. Lennar has raised its dividend for 1 consecutive years and United Rentals has raised its dividend for 1 consecutive years. Lennar is clearly the better dividend stock, given its higher yield and lower payout ratio.
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.
Lennar has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, United Rentals has a beta of 1.82, suggesting that its stock price is 82% 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.
Summary
Lennar and United Rentals 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 URI 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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