Lennar (LEN) Competitors

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

Which has more volatility and risk, LEN or DHI?

Lennar has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.75, indicating that its share price is 75% 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 1.4%. D.R. Horton pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. Lennar pays out 13.9% of its earnings in the form of a dividend. D.R. Horton pays out 11.1% 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.

Do analysts prefer LEN or DHI?

Lennar currently has a consensus target price of $171.50, suggesting a potential upside of 21.16%. D.R. Horton has a consensus target price of $176.20, suggesting a potential upside of 19.19%. Given Lennar's higher probable upside, equities 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)	7 Buy rating(s)	0 Strong Buy rating(s)	2.31

Does the media favor LEN or DHI?

In the previous week, D.R. Horton had 8 more articles in the media than Lennar. MarketBeat recorded 33 mentions for D.R. Horton and 25 mentions for Lennar. D.R. Horton's average media sentiment score of 0.40 beat Lennar's score of 0.31 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)	4 Positive mention(s)	9 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Neutral
D.R. Horton	11 Very Positive mention(s)	2 Positive mention(s)	11 Neutral mention(s)	4 Negative mention(s)	2 Very Negative mention(s)	Neutral

Which has better valuation & earnings, 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	1.08	$3.93B	$14.34	9.87
D.R. Horton	$36.80B	1.29	$4.76B	$14.36	10.29

Does the MarketBeat Community favor LEN or DHI?

Lennar received 226 more outperform votes than D.R. Horton when rated by MarketBeat users. Likewise, 66.99% of users gave Lennar an outperform vote while only 59.80% of users gave D.R. Horton an outperform vote.

Company	Underperform	Outperform
Lennar	Outperform Votes 885 66.99%	Underperform Votes 436 33.01%
D.R. Horton	Outperform Votes 659 59.80%	Underperform Votes 443 40.20%

Is LEN or DHI more profitable?

D.R. Horton has a net margin of 12.93% compared to Lennar's net margin of 11.10%. D.R. Horton's return on equity of 19.24% 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	12.93%	19.24%	13.68%

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. 9.4% of Lennar shares are held by company insiders. Comparatively, 0.5% of D.R. Horton shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

D.R. Horton beats Lennar on 15 of the 20 factors compared between the two stocks.