Lennar (NYSE:LEN) vs. NVR (NYSE:NVR) Financial Comparison

NVR (NYSE:NVR) and Lennar (NYSE:LEN) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

83.7% of NVR shares are held by institutional investors. Comparatively, 81.1% of Lennar shares are held by institutional investors. 8.6% of NVR shares are held by insiders. Comparatively, 10.1% of Lennar shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

NVR has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Lennar has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for NVR and Lennar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NVR	3	3	2	0	1.88
Lennar	11	7	1	0	1.47

NVR presently has a consensus target price of $6,564.83, suggesting a potential upside of 2.18%. Lennar has a consensus target price of $78.87, suggesting a potential downside of 14.02%. Given NVR’s stronger consensus rating and higher possible upside, research analysts clearly believe NVR is more favorable than Lennar.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NVR	$10.09 billion	1.69	$1.34 billion	$362.71	17.71
Lennar	$34.19 billion	0.64	$2.08 billion	$5.29	17.34

Lennar has higher revenue and earnings than NVR. Lennar is trading at a lower price-to-earnings ratio than NVR, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NVR	11.51%	29.23%	18.58%
Lennar	4.09%	6.15%	4.00%

Summary

NVR beats Lennar on 10 of the 14 factors compared between the two stocks.

About NVR

NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers. It also provides various mortgage related services to its homebuilding customers, as well as brokers title insurance; performs title searches in connection with mortgage loan closings; and sells mortgage loans to investors in the secondary markets on a servicing released basis. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, Georgia, South Carolina, Florida, Tennessee, and Washington, D.C. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia.

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; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title, insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans. In addition, the company is involved in the fund investment activity. It primarily serves first-time, move-up, active adult, and luxury homebuyers. Lennar Corporation was founded in 1954 and is based in Miami, Florida.