LEN vs. URI, OTIS, DHI, MLM, PWR, VMC, CRH, HWM, NVR, and PHM
Should you be buying Lennar stock or one of its competitors? The main competitors of Lennar include United Rentals (URI), Otis Worldwide (OTIS), D.R. Horton (DHI), Martin Marietta Materials (MLM), Quanta Services (PWR), Vulcan Materials (VMC), CRH (CRH), Howmet Aerospace (HWM), NVR (NVR), and PulteGroup (PHM). These companies are all part of the "construction" sector.
Lennar (NYSE:LEN) and United Rentals (NYSE:URI) are both large-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, community ranking, media sentiment, dividends, institutional ownership, valuation and profitability.
Lennar has higher revenue and earnings than United Rentals. Lennar is trading at a lower price-to-earnings ratio than United Rentals, indicating that it is currently the more affordable of the two stocks.
Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. United Rentals pays an annual dividend of $6.52 per share and has a dividend yield of 0.9%. Lennar pays out 14.0% of its earnings in the form of a dividend. United Rentals pays out 17.7% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
United Rentals has a net margin of 17.31% compared to Lennar's net margin of 11.59%. United Rentals' return on equity of 36.44% beat Lennar's return on equity.
Lennar has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, United Rentals has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.
Lennar currently has a consensus price target of $163.88, suggesting a potential upside of 5.41%. United Rentals has a consensus price target of $600.79, suggesting a potential downside of 15.69%. Given Lennar's stronger consensus rating and higher possible upside, equities research analysts plainly believe Lennar is more favorable than United Rentals.
In the previous week, United Rentals had 24 more articles in the media than Lennar. MarketBeat recorded 39 mentions for United Rentals and 15 mentions for Lennar. United Rentals' average media sentiment score of 0.93 beat Lennar's score of 0.56 indicating that United Rentals is being referred to more favorably in the news media.
Lennar received 121 more outperform votes than United Rentals when rated by MarketBeat users. Likewise, 68.33% of users gave Lennar an outperform vote while only 64.53% of users gave United Rentals an outperform vote.
81.1% of Lennar shares are owned by institutional investors. Comparatively, 96.3% of United Rentals shares are owned by institutional investors. 9.4% of Lennar shares are owned by insiders. Comparatively, 0.5% of United Rentals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Lennar and United Rentals tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LEN 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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