Reviewing Lennar (NYSE:LEN-B) & Beazer Homes USA (NYSE:BZH)

Beazer Homes USA (NYSE:BZH) and Lennar (NYSE:LEN-B) are both consumer cyclical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Beazer Homes USA and Lennar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beazer Homes USA	1	0	3	0	2.50
Lennar	0	0	0	0	N/A

Beazer Homes USA currently has a consensus price target of $39.67, indicating a potential upside of 18.87%. Given Beazer Homes USA’s higher probable upside, analysts plainly believe Beazer Homes USA is more favorable than Lennar.

Earnings and Valuation

This table compares Beazer Homes USA and Lennar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beazer Homes USA	$2.17 billion	0.49	$158.61 million	$5.18	6.44
Lennar	N/A	N/A	N/A	N/A	N/A

Beazer Homes USA has higher revenue and earnings than Lennar.

Insider and Institutional Ownership

85.7% of Beazer Homes USA shares are held by institutional investors. 7.0% of Beazer Homes USA shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Beazer Homes USA and Lennar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beazer Homes USA	6.63%	12.61%	5.81%
Lennar	N/A	N/A	N/A

Summary

Beazer Homes USA beats Lennar on 8 of the 8 factors compared between the two stocks.

About Beazer Homes USA

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.

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.