D.R. Horton (DHI) Competitors

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

Does the media refer more to LEN or DHI?

In the previous week, D.R. Horton had 18 more articles in the media than Lennar. MarketBeat recorded 42 mentions for D.R. Horton and 24 mentions for Lennar. Lennar's average media sentiment score of 1.11 beat D.R. Horton's score of 0.65 indicating that Lennar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lennar	16 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
D.R. Horton	20 Very Positive mention(s)	6 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate LEN or DHI?

Lennar presently has a consensus price target of $150.07, suggesting a potential upside of 39.48%. D.R. Horton has a consensus price target of $151.15, suggesting a potential upside of 21.13%. 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
Lennar	0 Sell rating(s)	14 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.32
D.R. Horton	2 Sell rating(s)	6 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	2.40

Does the MarketBeat Community prefer LEN or DHI?

Lennar received 223 more outperform votes than D.R. Horton when rated by MarketBeat users. Likewise, 66.32% of users gave Lennar an outperform vote while only 59.45% of users gave D.R. Horton an outperform vote.

Company	Underperform	Outperform
Lennar	Outperform Votes 890 66.32%	Underperform Votes 452 33.68%
D.R. Horton	Outperform Votes 667 59.45%	Underperform Votes 455 40.55%

Is LEN or DHI a better dividend stock?

Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. D.R. Horton pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. Lennar pays out 14.6% of its earnings in the form of a dividend. D.R. Horton pays out 12.1% 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.

Which has preferable valuation and earnings, LEN or DHI?

D.R. Horton has lower revenue, but higher 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
Lennar	$35.76B	0.79	$3.93B	$13.73	7.84
D.R. Horton	$35.32B	1.09	$4.76B	$13.21	9.45

Is LEN or DHI more profitable?

D.R. Horton has a net margin of 12.69% compared to Lennar's net margin of 11.10%. D.R. Horton's return on equity of 18.48% beat Lennar's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lennar	11.10%	13.93%	9.60%
D.R. Horton	12.69%	18.48%	13.23%

Which has more volatility and risk, LEN or DHI?

Lennar has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Do institutionals & insiders hold more shares of LEN or DHI?

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

Summary

D.R. Horton beats Lennar on 12 of the 20 factors compared between the two stocks.