D.R. Horton, Inc. (DHI) vs Lennar Corporation (LEN)

D.R. Horton, Inc. and Lennar Corporation are both Residential Construction companies. D.R. Horton, Inc. is the larger, with a market value of $42.8B against $21.7B — 2.0× the size. D.R. Horton, Inc. trades at the lower P/E: 15.4× against 17.3×. D.R. Horton, Inc. grew revenue faster over the last twelve months: −3.52% against −8.03%. D.R. Horton, Inc. has the higher net margin (8.74% vs 4.05%) and the higher return on invested capital (9.00% vs 4.53%). Both pay a dividend; Lennar Corporation yields more (2.18% vs 1.15%). Across the 23 metrics below, D.R. Horton, Inc. leads on 15 and Lennar Corporation on 8.

Valuation

Metric DHI LEN Residential Construction median
P/E 15.36 17.30 15.45
P/S 1.32 0.68 1.32
P/B 1.84 1.00 1.24
Price to free cash flow 13.01 23.23 21.26
EV/EBITDA 11.45 12.81 12.52
EV/Sales 1.36 0.78 1.48
Earnings yield 6.51% 5.78% 6.38%
Free cash flow yield 7.69% 4.30% 4.64%

Profitability

Metric DHI LEN Residential Construction median
Gross margin 22.28% 7.49% 19.15%
Operating margin 10.93% 5.63% 7.50%
Net margin 8.74% 4.05% 6.72%
Free cash flow margin 10.13% 2.93% 8.39%
Return on equity 11.93% 5.83% 11.56%
Return on assets 8.22% 3.80% 6.99%
Return on invested capital 9.00% 4.53% 4.98%

Growth

Metric DHI LEN Residential Construction median
Revenue growth (TTM) (3.52%) (8.03%) (6.00%)
EPS growth (last fiscal year) (11.17%) (44.23%) (25.22%)
Revenue growth, 5-year CAGR 3.54% 8.74% 8.74%
Net income growth, 5-year CAGR (7.10%) (3.32%) 8.25%

Health

Metric DHI LEN Residential Construction median
Debt to equity 0.26 0.20 0.17
Current ratio 6.01 4.94 3.25
Net debt to EBITDA 0.37 0.21 0.37

Dividend

Metric DHI LEN Residential Construction median
Dividend yield 1.15% 2.18% 1.15%
Payout ratio 0.18 0.38 0.18

Size

Metric DHI LEN Residential Construction median
Market cap 42.79b 21.73b 4.72b

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