Lennar (NYSE:LEN) versus Taylor Wimpey (OTCMKTS:TWODY) Head-To-Head Contrast

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lennar and Taylor Wimpey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennar	2	13	3	1	2.16
Taylor Wimpey	2	2	0	1	2.00

Lennar currently has a consensus target price of $121.75, indicating a potential downside of 3.20%. Given Lennar’s stronger consensus rating and higher probable upside, research analysts plainly believe Lennar is more favorable than Taylor Wimpey.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lennar	$35.44 billion	0.91	$3.93 billion	$10.12	12.43
Taylor Wimpey	$4.37 billion	1.13	$433.99 million	N/A	N/A

Lennar has higher revenue and earnings than Taylor Wimpey.

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	7.72%	11.09%	7.34%
Taylor Wimpey	N/A	N/A	N/A

Volatility & Risk

Lennar has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Taylor Wimpey has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Institutional and Insider Ownership

81.1% of Lennar shares are held by institutional investors. 10.0% of Lennar shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. Taylor Wimpey pays an annual dividend of $1.12 per share and has a dividend yield of 8.0%. Lennar pays out 19.8% of its earnings in the form of a dividend. Lennar has increased its dividend for 1 consecutive years.

Summary

Lennar beats Taylor Wimpey on 11 of the 15 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; 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.

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.