DHI vs. LEN, NVR, PHM, TOL, MTH, KBH, TPH, MHO, CVCO, and HOV
Should you be buying D.R. Horton stock or one of its competitors? The main competitors of D.R. Horton include Lennar (LEN), NVR (NVR), PulteGroup (PHM), Toll Brothers (TOL), Meritage Homes (MTH), KB Home (KBH), Tri Pointe Homes (TPH), M/I Homes (MHO), Cavco Industries (CVCO), and Hovnanian Enterprises (HOV). These companies are all part of the "homebuilding" industry.
Lennar (NYSE:LEN) and D.R. Horton (NYSE:DHI) are both large-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, community ranking, risk, valuation, profitability, dividends, analyst recommendations, media sentiment and institutional ownership.
81.1% of Lennar shares are held by institutional investors. Comparatively, 90.6% of D.R. Horton shares are held by institutional investors. 9.4% of Lennar shares are held by insiders. Comparatively, 1.7% of D.R. Horton shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
In the previous week, D.R. Horton had 9 more articles in the media than Lennar. MarketBeat recorded 35 mentions for D.R. Horton and 26 mentions for Lennar. Lennar's average media sentiment score of 0.73 beat D.R. Horton's score of 0.34 indicating that D.R. Horton is being referred to more favorably in the news media.
Lennar received 224 more outperform votes than D.R. Horton when rated by MarketBeat users. Likewise, 67.99% of users gave Lennar an outperform vote while only 60.15% of users gave D.R. Horton an outperform vote.
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.
Lennar presently has a consensus target price of $167.88, indicating a potential downside of 5.00%. D.R. Horton has a consensus target price of $175.60, indicating a potential downside of 0.79%. Given Lennar's stronger consensus rating and higher possible upside, analysts clearly believe D.R. Horton is more favorable than Lennar.
Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.1%. D.R. Horton pays an annual dividend of $1.20 per share and has a dividend yield of 0.7%. Lennar pays out 13.6% of its earnings in the form of a dividend. D.R. Horton pays out 8.2% 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 a net margin of 13.36% compared to D.R. Horton's net margin of 11.58%. Lennar's return on equity of 20.72% beat D.R. Horton's return on equity.
Lennar has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.
Summary
D.R. Horton beats Lennar on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DHI 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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