Lennar Corporation (LEN) vs NVR, Inc. (NVR)

Lennar Corporation and NVR, Inc. are both Residential Construction companies. Lennar Corporation is the larger, with a market value of $19.6B against $16.6B — 1.2× the size. NVR, Inc. trades at the lower P/E: 15.5× against 15.5×. Lennar Corporation grew revenue faster over the last twelve months: −8.03% against −9.93%. NVR, Inc. has the higher net margin (12.0% vs 4.06%) and the higher return on invested capital (34.9% vs 4.53%). Across the 22 metrics below, NVR, Inc. leads on 15 and Lennar Corporation on 7.

Valuation

Metric LEN NVR Residential Construction median
P/E 15.50 15.48 13.51
P/S 0.61 1.78 1.02
P/B 0.90 5.01 1.17
Price to free cash flow 23.17 16.23 16.79
EV/EBITDA 10.39 10.48 10.48
EV/Sales 0.71 1.71 1.31
Earnings yield 6.45% 6.46% 7.37%
Free cash flow yield 4.32% 6.16% 5.73%

Profitability

Metric LEN NVR Residential Construction median
Gross margin 7.49% 21.99% 22.30%
Operating margin 5.63% 16.04% 9.03%
Net margin 4.06% 11.98% 7.30%
Free cash flow margin 0.00% 10.99% 8.46%
Return on equity 5.84% 31.54% 9.84%
Return on assets 3.80% 20.01% 7.43%
Return on invested capital 4.53% 34.92% 6.90%

Growth

Metric LEN NVR Residential Construction median
Revenue growth (TTM) (8.03%) (9.93%) (7.37%)
EPS growth (last fiscal year) (44.23%) (13.84%) —
Revenue growth, 5-year CAGR 8.74% 6.50% 8.74%
Net income growth, 5-year CAGR (3.32%) 8.25% 8.43%

Health

Metric LEN NVR Residential Construction median
Debt to equity 0.20 0.27 0.20
Current ratio 4.94 5.28 3.56
Net debt to EBITDA 0.21 (0.88) 0.28

Dividend

Metric LEN NVR Residential Construction median
Dividend yield 1.04% — 0.89%
Payout ratio 0.11 0.00 0.00

Size

Metric LEN NVR Residential Construction median
Market cap 19.63b 16.62b 4.18b

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