Comparing Lennar (NYSE:LEN.B) and Persimmon (OTCMKTS:PSMMY)

Persimmon (OTCMKTS:PSMMY) and Lennar (NYSE:LEN.B) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

3.3% of Lennar shares are owned by institutional investors. 0.6% of Persimmon shares are owned by insiders. Comparatively, 15.0% of Lennar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Persimmon and Lennar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Persimmon	N/A	N/A	N/A
Lennar	6.08%	9.27%	6.05%

Volatility & Risk

Persimmon has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Dividends

Persimmon pays an annual dividend of $0.91 per share and has a dividend yield of 2.6%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 2.0%. Lennar pays out 16.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Persimmon and Lennar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Persimmon	0	0	4	1	3.20
Lennar	0	0	0	0	0.00

Earnings and Valuation

This table compares Persimmon and Lennar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Persimmon	$4.09 billion	1.38	$341.33 million	N/A	N/A
Lennar	$34.19 billion	0.74	$3.93 billion	$12.09	8.15

Lennar has higher revenue and earnings than Persimmon.

Summary

Lennar beats Persimmon on 8 of the 14 factors compared between the two stocks.

About Persimmon

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; housing under the Charles Church brand name; and social housing under the Westbury Partnerships brand name. It also provides broadband services under the FibreNest brand; and timber frame, insulated wall panels, and roof cassettes under the brand Space4. Further, it offers concrete bricks and roof tile. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.

About Lennar

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land. It primarily sells single-family attached and detached homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers. The company also offers residential mortgage financing, title insurance, and closing services for home buyers and others. In addition, it involves in the fund investment activity; and originates and sells into securitizations commercial mortgage loans. Further, the company develops, constructs, and manages multifamily rental properties. Lennar Corporation was founded in 1954 and is based in Miami, Florida.