Analyzing Lennar (NYSE:LEN) & Koss (NASDAQ:KOSS)

Koss (NASDAQ:KOSS) and Lennar (NYSE:LEN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

6.2% of Koss shares are owned by institutional investors. Comparatively, 81.1% of Lennar shares are owned by institutional investors. 44.1% of Koss shares are owned by company insiders. Comparatively, 10.1% of Lennar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Koss	-3.00%	-1.29%	-1.06%
Lennar	4.09%	6.15%	4.00%

Volatility & Risk

Koss has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares Koss and Lennar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koss	$13.02 million	2.79	-$390,000.00	($0.04)	-95.75
Lennar	$34.19 billion	0.52	$2.08 billion	$5.29	14.16

Lennar has higher revenue and earnings than Koss. Koss is trading at a lower price-to-earnings ratio than Lennar, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Koss and Lennar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koss	1	0	0	0	1.00
Lennar	10	8	1	0	1.53

Lennar has a consensus target price of $79.00, suggesting a potential upside of 5.47%. Given Lennar’s stronger consensus rating and higher probable upside, analysts clearly believe Lennar is more favorable than Koss.

Summary

Lennar beats Koss on 11 of the 14 factors compared between the two stocks.

About Koss

Koss Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, Korea, Republic of Belgium, Malaysia, and internationally. It offers high-fidelity headphones, wireless bluetooth headphones, wireless bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name, as well as private label. It sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company markets through domestic retail outlets and numerous retailers. It exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.

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.