Lennar (NYSE:LEN) & NVR (NYSE:NVR) Head-To-Head Contrast
by Michael Walen · The Markets DailyNVR (NYSE:NVR – Get Free Report) and Lennar (NYSE:LEN – Get Free Report) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Earnings and Valuation
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 | 1.55 | $1.34 billion | $362.71 | 16.32 |
| Lennar | $34.19 billion | 0.60 | $2.08 billion | $5.29 | 16.40 |
Lennar has higher revenue and earnings than NVR. NVR is trading at a lower price-to-earnings ratio than Lennar, 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% | 29.53% | 18.64% |
| Lennar | 4.09% | 6.15% | 4.00% |
Analyst Recommendations
This is a summary of current ratings 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 currently has a consensus target price of $6,564.83, suggesting a potential upside of 10.88%. Lennar has a consensus target price of $78.87, suggesting a potential downside of 9.10%. Given NVR’s stronger consensus rating and higher probable upside, equities analysts plainly believe NVR is more favorable than Lennar.
Institutional & Insider Ownership
83.7% of NVR shares are owned by institutional investors. Comparatively, 81.1% of Lennar shares are owned by institutional investors. 8.6% of NVR shares are owned by company insiders. Comparatively, 10.1% of Lennar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
NVR has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Lennar has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
Summary
NVR beats Lennar on 9 of the 14 factors compared between the two stocks.
About NVR
NVR, Inc. is a homebuilding and mortgage banking company. Through its homebuilding operations, it designs and constructs single-family homes and townhomes for buyers across a range of price points. The company markets homes under the Ryan Homes, NVHomes and Heartland Homes brands. Its homebuilding business serves communities in multiple regions of the United States, including the Mid-Atlantic, Northeast, Southeast and Midwest. NVR also provides mortgage banking and related services to homebuyers through its mortgage operations.
About Lennar
Lennar Corporation is a U.S. homebuilder that designs, builds and sells homes in communities across many major housing markets in the country. Its offerings include single-family homes and townhomes, with options and designs aimed at a range of homebuyers. The company also provides services that support home purchases, including mortgage financing and title and closing services. Lennar traces its roots to a homebuilding business founded in Miami in 1954 and has expanded its operations across the United States.