Lennar (LEN) Competitors

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

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

Which has preferable earnings & valuation, 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	$35.44B	0.86	$3.93B	$10.12	11.59
D.R. Horton	$34.58B	1.31	$4.76B	$12.47	12.15

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%

Does the media favor LEN or DHI?

In the previous week, D.R. Horton had 17 more articles in the media than Lennar. MarketBeat recorded 31 mentions for D.R. Horton and 14 mentions for Lennar. Lennar's average media sentiment score of 1.01 beat D.R. Horton's score of 0.87 indicating that Lennar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lennar	9 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
D.R. Horton	18 Very Positive mention(s)	3 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend LEN or DHI?

Lennar currently has a consensus target price of $123.42, indicating a potential upside of 5.22%. D.R. Horton has a consensus target price of $157.31, indicating a potential upside of 3.85%. Given Lennar's higher possible upside, equities analysts plainly believe Lennar is more favorable than D.R. Horton.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennar	2 Sell rating(s)	13 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.16
D.R. Horton	2 Sell rating(s)	8 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.31

Which has more risk and volatility, LEN or DHI?

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

Is LEN or DHI a better dividend stock?

Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.7%. D.R. Horton pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. 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.

Summary

D.R. Horton beats Lennar on 14 of the 19 factors compared between the two stocks.