Financial Review: Loma Negra Compania Industrial Argentina (NYSE:LOMA) and Lennar (NYSE:LEN)

Loma Negra Compania Industrial Argentina (NYSE:LOMA) and Lennar (NYSE:LEN) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Risk & Volatility

Loma Negra Compania Industrial Argentina has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Insider & Institutional Ownership

19.3% of Loma Negra Compania Industrial Argentina shares are owned by institutional investors. Comparatively, 81.1% of Lennar shares are owned by institutional investors. 10.0% 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 Loma Negra Compania Industrial Argentina and Lennar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loma Negra Compania Industrial Argentina	9.63%	7.88%	4.44%
Lennar	9.20%	12.73%	8.57%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Loma Negra Compania Industrial Argentina and Lennar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loma Negra Compania Industrial Argentina	0	0	4	0	3.00
Lennar	0	14	2	1	2.24

Loma Negra Compania Industrial Argentina currently has a consensus price target of $14.80, indicating a potential upside of 58.63%. Lennar has a consensus price target of $128.85, indicating a potential downside of 3.32%. Given Loma Negra Compania Industrial Argentina’s stronger consensus rating and higher probable upside, research analysts clearly believe Loma Negra Compania Industrial Argentina is more favorable than Lennar.

Valuation & Earnings

This table compares Loma Negra Compania Industrial Argentina and Lennar”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loma Negra Compania Industrial Argentina	$767.70 million	1.42	$169.19 million	$0.55	16.96
Lennar	$35.44 billion	0.97	$3.93 billion	$12.09	11.02

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

Summary

Lennar beats Loma Negra Compania Industrial Argentina on 9 of the 15 factors compared between the two stocks.

About Loma Negra Compania Industrial Argentina

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.

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.