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 investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, media sentiment, analyst recommendations, community ranking, institutional ownership, profitability and earnings.

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 higher earnings & 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	0.92	$3.93B	$14.34	8.55
D.R. Horton	$36.80B	1.10	$4.76B	$14.15	9.09

Which has more risk & volatility, LEN or DHI?

Lennar has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Do analysts recommend LEN or DHI?

Lennar currently has a consensus target price of $163.88, suggesting a potential upside of 33.65%. D.R. Horton has a consensus target price of $170.93, suggesting a potential upside of 32.90%. Given Lennar's higher possible upside, research analysts plainly 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)	13 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.25
D.R. Horton	2 Sell rating(s)	7 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.27

Do insiders & institutionals 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. 9.4% of Lennar shares are owned by insiders. Comparatively, 0.5% of D.R. Horton shares are owned 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.

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 1.2%. Lennar pays out 13.9% of its earnings in the form of a dividend. D.R. Horton pays out 11.3% 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.

Does the media prefer LEN or DHI?

In the previous week, D.R. Horton had 7 more articles in the media than Lennar. MarketBeat recorded 32 mentions for D.R. Horton and 25 mentions for Lennar. D.R. Horton's average media sentiment score of 1.16 beat Lennar's score of 0.55 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	11 Very Positive mention(s)	3 Positive mention(s)	6 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive
D.R. Horton	24 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	2 Very Negative mention(s)	Positive

Does the MarketBeat Community favor LEN or DHI?

Lennar received 226 more outperform votes than D.R. Horton when rated by MarketBeat users. Likewise, 66.82% of users gave Lennar an outperform vote while only 59.62% of users gave D.R. Horton an outperform vote.

Company	Underperform	Outperform
Lennar	Outperform Votes 886 66.82%	Underperform Votes 440 33.18%
D.R. Horton	Outperform Votes 660 59.62%	Underperform Votes 447 40.38%

Summary

D.R. Horton beats Lennar on 13 of the 19 factors compared between the two stocks.