Head-To-Head Review: Taylor Wimpey (OTCMKTS:TWODY) versus Lennar (NYSE:LEN.B)

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

Dividends

Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. Taylor Wimpey pays an annual dividend of $1.09 per share and has a dividend yield of 7.9%. Lennar pays out 16.5% of its earnings in the form of a dividend.

Institutional & Insider Ownership

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lennar	$34.19 billion	0.79	$3.93 billion	$12.09	8.81
Taylor Wimpey	$4.37 billion	1.12	$433.99 million	N/A	N/A

Lennar has higher revenue and earnings than Taylor Wimpey.

Volatility & Risk

Lennar has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Taylor Wimpey has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lennar	6.08%	9.21%	6.04%
Taylor Wimpey	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lennar and Taylor Wimpey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennar	0	0	0	0	0.00
Taylor Wimpey	1	3	1	1	2.33

Summary

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

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.

About Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.