D.R. Horton (DHI) Competitors

D.R. Horton (NYSE:DHI) and Lennar (NYSE:LEN) are both large-cap construction companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, media sentiment, profitability, dividends and analyst recommendations.

Which has better earnings & valuation, DHI or LEN?

D.R. Horton has higher revenue and earnings than Lennar. Lennar is trading at a lower price-to-earnings ratio than D.R. Horton, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D.R. Horton	$36.80B	1.10	$4.76B	$13.21	9.93
Lennar	$35.44B	0.80	$3.93B	$12.09	9.08

Does the media prefer DHI or LEN?

In the previous week, D.R. Horton had 11 more articles in the media than Lennar. MarketBeat recorded 24 mentions for D.R. Horton and 13 mentions for Lennar. Lennar's average media sentiment score of 0.95 beat D.R. Horton's score of 0.94 indicating that Lennar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
D.R. Horton	15 Very Positive mention(s)	1 Positive mention(s)	8 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Lennar	8 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is DHI or LEN a better dividend stock?

D.R. Horton pays an annual dividend of $1.60 per share and has a dividend yield of 1.2%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.8%. D.R. Horton pays out 12.1% of its earnings in the form of a dividend. Lennar pays out 16.5% 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 increased its dividend for 10 consecutive years and Lennar has increased its dividend for 1 consecutive years.

Do institutionals and insiders believe in DHI or LEN?

90.6% of D.R. Horton shares are held by institutional investors. Comparatively, 81.1% of Lennar shares are held by institutional investors. 0.5% of D.R. Horton shares are held by company insiders. Comparatively, 10.0% of Lennar shares are held by company 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.

Is DHI or LEN more profitable?

D.R. Horton has a net margin of 12.15% compared to Lennar's net margin of 9.20%. D.R. Horton's return on equity of 16.95% beat Lennar's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
D.R. Horton	12.15%	16.95%	12.09%
Lennar	9.20%	12.73%	8.57%

Do analysts recommend DHI or LEN?

D.R. Horton presently has a consensus price target of $151.15, indicating a potential upside of 15.21%. Lennar has a consensus price target of $128.85, indicating a potential upside of 17.38%. Given Lennar's higher possible upside, analysts plainly believe Lennar is more favorable than D.R. Horton.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D.R. Horton	2 Sell rating(s)	6 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	2.40
Lennar	0 Sell rating(s)	14 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.24

Which has more volatility & risk, DHI or LEN?

D.R. Horton has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Summary

D.R. Horton beats Lennar on 15 of the 19 factors compared between the two stocks.