Head-To-Head Review: Taylor Wimpey (OTCMKTS:TWODY) vs. Lennar (NYSE:LEN)

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

Institutional & Insider Ownership

81.1% of Lennar shares are owned by institutional investors. 10.0% of Lennar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Taylor Wimpey pays an annual dividend of $1.11 per share and has a dividend yield of 8.0%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. Lennar pays out 19.8% of its earnings in the form of a dividend. Lennar has increased its dividend for 1 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Wimpey	$4.37 billion	1.12	$433.99 million	N/A	N/A
Lennar	$35.44 billion	0.91	$3.93 billion	$10.12	12.44

Lennar has higher revenue and earnings than Taylor Wimpey.

Analyst Ratings

This is a summary of current ratings and price targets for Taylor Wimpey and Lennar, as provided by MarketBeat.

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

Lennar has a consensus target price of $121.75, suggesting a potential downside of 3.27%. Given Lennar’s stronger consensus rating and higher probable upside, analysts clearly believe Lennar is more favorable than Taylor Wimpey.

Profitability

This table compares Taylor Wimpey and Lennar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Wimpey	N/A	N/A	N/A
Lennar	7.72%	11.09%	7.34%

Volatility & Risk

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

Summary

Lennar beats Taylor Wimpey on 11 of the 15 factors compared between the two stocks.

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.

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.