Analyzing Lennar's Strong Performance in Fiscal 4Q15
Lennar and its peers
In this part, we’ll compare Lennar (LEN) with its peers:
- The PE (price-to-earnings) ratios of Lennar, D.R. Horton (DHI), PulteGroup (PHM), NVR (NVR), and KB Home (KBH) are 14.3x, 15.2x, 12.9x, 20.3x, and 1.4x, respectively, as of December 18, 2015.
- The PBV (price-to-book value) ratios of Lennar, D.R. Horton, PulteGroup, NVR, and KB Home are 1.8x, 1.9x, 1.3x, 5.4x, and 0.68x, respectively.
As a result, Lennar showed mixed results compared to its peers based on the PE and PBV ratios.
ETFs that invest in Lennar
The iShares Dow Jones US Home Construction ETF (ITB) invests 10.4% of its holdings in Lennar.
The SPDR S&P Homebuilders ETF (XHB) invests 3.3% of its holdings in Lennar. XHB tracks a broad-based, equal-weighted index of US companies involved in the homebuilding industry.
The Guggenheim S&P 500 Pure Growth ETF (RPG) invests 2.0% of its holdings in Lennar. RPG tracks an index of primarily large and midcaps with strong growth characteristics. The index selects companies from the S&P 500 Index based on three growth factors.
Comparing Lennar and its ETFs
Now, let’s compare Lennar with the ETFs that invest in it:
- The YTD (year-to-date) price movements of Lennar, ITB, XHB, and RPG are 6.3%, 4.9%, 1.3%, and 2.4%, respectively.
- The PE ratios of Lennar, ITB, XHB, and RPG are 14.3x, 13.8x, 21.4x, and 25.1x, respectively.
- The PBV ratios of Lennar, ITB, XHB, and RPG are 1.8x, 2.2x, 2.8x, and 4.4x, respectively.
According to the above findings, the ETFs outperformed Lennar based on the PE and PBV ratios. However, Lennar is ahead of its ETFs based on the price movement.
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