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 stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability, media sentiment and valuation.

Which has more volatility and risk, LEN or DHI?

Lennar has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Is LEN or DHI 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
Lennar	9.20%	12.73%	8.57%
D.R. Horton	12.15%	16.95%	12.09%

Do analysts rate LEN or DHI?

Lennar currently has a consensus target price of $128.85, indicating a potential upside of 16.31%. D.R. Horton has a consensus target price of $151.15, indicating a potential upside of 17.16%. Given D.R. Horton's stronger consensus rating and higher probable upside, analysts clearly believe D.R. Horton is more favorable than Lennar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennar	0 Sell rating(s)	15 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.22
D.R. Horton	2 Sell rating(s)	6 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	2.40

Does the media prefer LEN or DHI?

In the previous week, D.R. Horton had 12 more articles in the media than Lennar. MarketBeat recorded 27 mentions for D.R. Horton and 15 mentions for Lennar. D.R. Horton's average media sentiment score of 1.31 beat Lennar's score of 0.75 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	9 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
D.R. Horton	22 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is LEN or DHI a better dividend stock?

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

Which has higher 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	$35.44B	0.82	$3.93B	$12.09	9.16
D.R. Horton	$36.80B	1.08	$4.76B	$13.21	9.77

Do insiders & 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

D.R. Horton beats Lennar on 17 of the 19 factors compared between the two stocks.