URI vs. LEN, DHI, OTIS, MLM, PWR, CRH, VMC, HWM, NVR, and PHM
Should you be buying United Rentals stock or one of its competitors? The main competitors of United Rentals include Lennar (LEN), D.R. Horton (DHI), Otis Worldwide (OTIS), Martin Marietta Materials (MLM), Quanta Services (PWR), CRH (CRH), Vulcan Materials (VMC), Howmet Aerospace (HWM), NVR (NVR), and PulteGroup (PHM). These companies are all part of the "construction" sector.
United Rentals (NYSE:URI) and Lennar (NYSE:LEN) are both large-cap construction companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, community ranking, media sentiment, institutional ownership and valuation.
United Rentals has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
United Rentals pays an annual dividend of $6.52 per share and has a dividend yield of 0.9%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. United Rentals pays out 17.7% of its earnings in the form of a dividend. Lennar pays out 14.0% 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.
96.3% of United Rentals shares are held by institutional investors. Comparatively, 81.1% of Lennar shares are held by institutional investors. 0.5% of United Rentals shares are held by company insiders. Comparatively, 9.4% of Lennar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
In the previous week, United Rentals had 17 more articles in the media than Lennar. MarketBeat recorded 34 mentions for United Rentals and 17 mentions for Lennar. United Rentals' average media sentiment score of 0.94 beat Lennar's score of 0.61 indicating that United Rentals is being referred to more favorably in the media.
Lennar received 122 more outperform votes than United Rentals when rated by MarketBeat users. Likewise, 68.33% of users gave Lennar an outperform vote while only 64.55% of users gave United Rentals an outperform vote.
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.
United Rentals currently has a consensus price target of $600.57, indicating a potential downside of 13.06%. Lennar has a consensus price target of $163.88, indicating a potential upside of 6.21%. Given Lennar's stronger consensus rating and higher possible upside, analysts clearly believe Lennar is more favorable than United Rentals.
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.
Summary
United Rentals and Lennar 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 URI 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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