Lennar Corporation (LEN.B) vs PulteGroup, Inc. (PHM)

Lennar Corporation and PulteGroup, Inc. are both Residential Construction companies. Lennar Corporation is the larger, with a market value of $38.8B against $22.0B — 1.8× the size. PulteGroup, Inc. trades at the lower P/E: 12.2× against 12.6×. PulteGroup, Inc. grew revenue faster over the last twelve months: −7.28% against −7.45%. PulteGroup, Inc. has the higher net margin (11.6% vs 4.88%) and the higher return on invested capital (11.2% vs 5.32%). Both pay a dividend; Lennar Corporation yields more (1.12% vs 0.74%). Across the 23 metrics below, PulteGroup, Inc. leads on 18 and Lennar Corporation on 5.

Valuation

Metric LEN.B PHM Residential Construction median
P/E 12.60 12.16 13.51
P/S 0.59 1.38 1.02
P/B 0.89 1.74 1.17
Price to free cash flow 22.99 15.01 16.79
EV/EBITDA 9.90 8.99 10.48
EV/Sales 0.66 1.44 1.31
Earnings yield 7.94% 8.23% 7.37%
Free cash flow yield 4.35% 6.66% 5.73%

Profitability

Metric LEN.B PHM Residential Construction median
Gross margin 8.15% 25.15% 22.30%
Operating margin 6.23% 15.16% 9.03%
Net margin 4.88% 11.62% 7.30%
Free cash flow margin 2.58% 9.22% 8.46%
Return on equity 7.19% 14.90% 9.84%
Return on assets 4.70% 10.64% 7.43%
Return on invested capital 5.32% 11.15% 6.90%

Growth

Metric LEN.B PHM Residential Construction median
Revenue growth (TTM) (7.45%) (7.28%) (7.37%)
EPS growth (last fiscal year) (44.23%) (24.30%) —
Revenue growth, 5-year CAGR 8.74% 9.42% 8.74%
Net income growth, 5-year CAGR (3.32%) 9.73% 8.43%

Health

Metric LEN.B PHM Residential Construction median
Debt to equity 0.19 0.18 0.20
Current ratio 4.91 0.78 3.56
Net debt to EBITDA 0.21 0.05 0.28

Dividend

Metric LEN.B PHM Residential Construction median
Dividend yield 1.12% 0.74% 0.89%
Payout ratio 0.11 0.05 0.00

Size

Metric LEN.B PHM Residential Construction median
Market cap 38.81b 21.96b 4.18b

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