LEN vs. URI, DHI, OTIS, PWR, MLM, VMC, CRH, HWM, PHM, and NVR
Should you be buying Lennar stock or one of its competitors? The main competitors of Lennar include United Rentals (URI), D.R. Horton (DHI), Otis Worldwide (OTIS), Quanta Services (PWR), Martin Marietta Materials (MLM), Vulcan Materials (VMC), CRH (CRH), Howmet Aerospace (HWM), PulteGroup (PHM), and NVR (NVR). 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 stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, community ranking, analyst recommendations, risk and media sentiment.
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 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.
In the previous week, Lennar had 11 more articles in the media than United Rentals. MarketBeat recorded 19 mentions for Lennar and 8 mentions for United Rentals. United Rentals' average media sentiment score of 1.39 beat Lennar's score of 0.94 indicating that United Rentals is being referred to more favorably in the news media.
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 company insiders. Comparatively, 0.5% of United Rentals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.2%. United Rentals pays an annual dividend of $6.52 per share and has a dividend yield of 1.0%. 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.
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 currently has a consensus price target of $163.88, indicating a potential downside of 1.21%. United Rentals has a consensus price target of $600.79, indicating a potential downside of 12.40%. Given Lennar's stronger consensus rating and higher probable upside, research analysts clearly believe Lennar is more favorable than United Rentals.
Lennar has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, United Rentals has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.
Summary
Lennar beats United Rentals on 11 of the 20 factors compared between the two stocks.
Get Lennar News Delivered to You Automatically
Sign up to receive the latest news and ratings for LEN and its competitors with MarketBeat's FREE daily newsletter.
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.
Related Companies and Tools
