Financial Analysis: TRI Pointe Group (NYSE:TPH) vs. Lennar Corporation (LEN.B)
TRI Pointe Group (NYSE: TPH) and Lennar Corporation (NYSE:LEN.B) are both mid-cap construction companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Lennar Corporation pays an annual dividend of $0.16 per share. TRI Pointe Group does not pay a dividend. Lennar Corporation pays out 4.7% of its earnings in the form of a dividend.
This table compares TRI Pointe Group and Lennar Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TRI Pointe Group||5.77%||7.32%||3.71%|
Institutional & Insider Ownership
98.7% of TRI Pointe Group shares are held by institutional investors. Comparatively, 3.2% of Lennar Corporation shares are held by institutional investors. 9.4% of TRI Pointe Group shares are held by company insiders. Comparatively, 15.0% of Lennar Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for TRI Pointe Group and Lennar Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TRI Pointe Group||1||4||3||0||2.25|
TRI Pointe Group currently has a consensus price target of $14.00, suggesting a potential upside of 1.60%.
Risk and Volatility
TRI Pointe Group has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Lennar Corporation has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
Valuation & Earnings
This table compares TRI Pointe Group and Lennar Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TRI Pointe Group||$2.32 billion||0.90||$210.85 million||$0.84||16.40|
TRI Pointe Group has higher revenue and earnings than Lennar Corporation. Lennar Corporation is trading at a lower price-to-earnings ratio than TRI Pointe Group, indicating that it is currently the more affordable of the two stocks.
TRI Pointe Group beats Lennar Corporation on 6 of the 11 factors compared between the two stocks.
TRI Pointe Group Company Profile
TRI Pointe Group, Inc. is a homebuilder company. The Company’s operations are organized in two principal businesses, including homebuilding and financial services. Its homebuilding operation consists of six segments: Maracay Homes, including operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado, and Winchester Homes, consisting of operations in Maryland and Virginia. Its financial services operation (TRI Pointe Solutions) includes mortgage financing operations and title services operations. Its mortgage financing operation (TRI Pointe Connect) provides mortgage financing to its homebuyers in all of its operated markets. Its title services operation (TRI Pointe Assurance) provides title examinations for its homebuyers in its Trendmaker Homes and Winchester Homes brands.
Lennar Corporation Company Profile
Lennar Corporation is a provider of real estate related financial services, commercial real estate, investment management and finance company. The Company is a homebuilder that operates in various states. Its segments include Homebuilding East, Homebuilding Central, Homebuilding West, Lennar Financial Services, Rialto and Lennar Multifamily. It is a developer of multifamily rental properties. Its 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. It operates primarily under the Lennar brand name. The Lennar Financial Services segment includes mortgage financing, title insurance and closing services for both buyers of its homes and others. The Rialto segment is a real estate, investment management, and finance company. The Lennar Multifamily segment focuses on developing a portfolio of institutional multifamily rental properties in the United States markets.
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