NVR (NVR) & Lennar Corporation (LEN) Critical Review
NVR (NYSE: NVR) and Lennar Corporation (NYSE:LEN) are both large-cap construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
This table compares NVR and Lennar Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares NVR and Lennar Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NVR||$6.12 billion||1.69||$800.07 million||$126.57||21.81|
|Lennar Corporation||$11.81 billion||0.93||$1.36 billion||$3.42||15.82|
Lennar Corporation has higher revenue and earnings than NVR. Lennar Corporation is trading at a lower price-to-earnings ratio than NVR, indicating that it is currently the more affordable of the two stocks.
Lennar Corporation pays an annual dividend of $0.16 per share and has a dividend yield of 0.3%. NVR does not pay a dividend. Lennar Corporation pays out 4.7% of its earnings in the form of a dividend.
Volatility and Risk
NVR has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Lennar Corporation has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Insider & Institutional Ownership
77.3% of NVR shares are owned by institutional investors. Comparatively, 81.8% of Lennar Corporation shares are owned by institutional investors. 11.3% of NVR shares are owned by company insiders. Comparatively, 12.2% of Lennar Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for NVR and Lennar Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NVR presently has a consensus target price of $2,645.00, suggesting a potential downside of 4.17%. Lennar Corporation has a consensus target price of $56.31, suggesting a potential upside of 4.11%. Given Lennar Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Lennar Corporation is more favorable than NVR.
Lennar Corporation beats NVR on 10 of the 17 factors compared between the two stocks.
NVR, Inc. is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. The Company’s segments are Homebuilding Mid Atlantic, Homebuilding North East, Homebuilding Mid East, Homebuilding South East and Mortgage Banking. Its Homebuilding Mid Atlantic segment operates in various geographic regions, which include Maryland, Virginia, West Virginia, Delaware and Washington, District of Columbia (D.C.). Its Homebuilding North East segment operates in various geographic regions, which include New Jersey and Eastern Pennsylvania. Its Homebuilding Mid East segment operates in various geographic regions, which include New York, Ohio, Indiana and Illinois, The Homebuilding South East segment operates in various geographic regions, which include North Carolina, South Carolina, Florida and Tennessee. The Mortgage Banking segment provides mortgage-related services to home building customers through its mortgage banking operations.
About Lennar Corporation
Lennar Corporation is a provider of real estate related financial services, commercial real estate, investment management and finance company. The Company is a homebuilder that operates in various states. Its segments include Homebuilding East, Homebuilding Central, Homebuilding West, Lennar Financial Services, Rialto and Lennar Multifamily. It is a developer of multifamily rental properties. Its 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 operates primarily under the Lennar brand name. The Lennar Financial Services segment includes mortgage financing, title insurance and closing services for both buyers of its homes and others. The Rialto segment is a real estate, investment management, and finance company. The Lennar Multifamily segment focuses on developing a portfolio of institutional multifamily rental properties in the United States markets.
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