Lennar (NYSE:LEN) vs. Flexsteel Industries (NASDAQ:FLXS) Head-To-Head Comparison

Flexsteel Industries (NASDAQ:FLXS) and Lennar (NYSE:LEN) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Valuation and Earnings

This table compares Flexsteel Industries and Lennar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flexsteel Industries	$459.18 million	0.99	$33.13 million	$6.21	13.68
Lennar	$34.19 billion	0.59	$2.08 billion	$5.29	15.97

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Flexsteel Industries and Lennar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flexsteel Industries	0	2	1	1	2.75
Lennar	11	7	1	0	1.47

Flexsteel Industries presently has a consensus price target of $80.00, indicating a potential downside of 5.86%. Lennar has a consensus price target of $79.00, indicating a potential downside of 6.47%. Given Flexsteel Industries’ stronger consensus rating and higher probable upside, equities analysts clearly believe Flexsteel Industries is more favorable than Lennar.

Risk & Volatility

Flexsteel Industries has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Lennar has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Insider and Institutional Ownership

36.3% of Flexsteel Industries shares are owned by institutional investors. Comparatively, 81.1% of Lennar shares are owned by institutional investors. 11.2% of Flexsteel Industries shares are owned by insiders. Comparatively, 10.1% of Lennar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flexsteel Industries	7.21%	16.11%	9.67%
Lennar	4.09%	6.15%	4.00%

Dividends

Flexsteel Industries pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 2.4%. Flexsteel Industries pays out 16.1% of its earnings in the form of a dividend. Lennar pays out 37.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Flexsteel Industries has raised its dividend for 1 consecutive years and Lennar has raised its dividend for 1 consecutive years.

Summary

Flexsteel Industries beats Lennar on 10 of the 16 factors compared between the two stocks.

About Flexsteel Industries

Flexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and markets of upholstered furniture for residential and contract markets in the United States. It provides upholstered furniture, such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. The company distributes its products through e-commerce channels and dealer sales force. It also engages in export related activities. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.

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.