D.R. Horton (DHI) Competitors

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

Is LEN or DHI a better dividend stock?

Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. D.R. Horton pays an annual dividend of $1.60 per share and has a dividend yield of 1.0%. Lennar pays out 19.8% of its earnings in the form of a dividend. D.R. Horton pays out 12.8% 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 D.R. Horton has raised its dividend for 10 consecutive years.

Is LEN or DHI more profitable?

D.R. Horton has a net margin of 11.46% compared to Lennar's net margin of 7.72%. D.R. Horton's return on equity of 15.74% beat Lennar's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lennar	7.72%	11.09%	7.34%
D.R. Horton	11.46%	15.74%	11.07%

Which has better earnings and valuation, LEN or DHI?

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
Lennar	$34.77B	0.91	$3.93B	$10.12	12.07
D.R. Horton	$36.80B	1.31	$4.76B	$12.47	12.93

Does the media favor LEN or DHI?

In the previous week, D.R. Horton had 14 more articles in the media than Lennar. MarketBeat recorded 26 mentions for D.R. Horton and 12 mentions for Lennar. D.R. Horton's average media sentiment score of 1.04 beat Lennar's score of 0.82 indicating that D.R. Horton is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lennar	8 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
D.R. Horton	17 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals have more ownership in LEN or DHI?

81.1% of Lennar shares are held by institutional investors. Comparatively, 90.6% of D.R. Horton shares are held by institutional investors. 10.0% of Lennar shares are held by insiders. Comparatively, 0.5% of D.R. Horton shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Which has more volatility and risk, LEN or DHI?

Lennar has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Do analysts rate LEN or DHI?

Lennar presently has a consensus target price of $123.42, indicating a potential upside of 1.05%. D.R. Horton has a consensus target price of $157.31, indicating a potential downside of 2.43%. Given Lennar's higher probable upside, analysts clearly believe Lennar is more favorable than D.R. Horton.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennar	1 Sell rating(s)	14 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.21
D.R. Horton	2 Sell rating(s)	8 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.31

Summary

D.R. Horton beats Lennar on 16 of the 19 factors compared between the two stocks.