Lennar (NYSE:LEN.B) and Pernix Group (OTCMKTS:PRXG) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.
Risk & Volatility
Lennar has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Pernix Group has a beta of -3.69, suggesting that its stock price is 469% less volatile than the S&P 500.
Lennar pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Pernix Group does not pay a dividend.
This is a breakdown of recent ratings for Lennar and Pernix Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings and Valuation
This table compares Lennar and Pernix Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lennar||$12.65 billion||0.90||$810.48 million||N/A||N/A|
|Pernix Group||$195.49 million||0.10||-$18.84 million||N/A||N/A|
Lennar has higher revenue and earnings than Pernix Group.
This table compares Lennar and Pernix Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
3.8% of Lennar shares are held by institutional investors. 15.0% of Lennar shares are held by insiders. Comparatively, 0.1% of Pernix Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Lennar beats Pernix Group on 10 of the 10 factors compared between the two stocks.
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.
About Pernix Group
Pernix Group, Inc. provides construction and power services in the United States and internationally. The company's Construction segment offers pre-construction consulting, construction management, design build, and general contracting services to U.S. Department of State and other government clients, and private sector commercial clients. Its Power Services segment develops, constructs, operates, and maintains power production facilities. This segment provides engineering, procurement, construction, operations, and maintenance services for small to mid-size power plants; and builds, operates, and maintains power plants, transmission and distribution grids, and underground cable installation. Pernix Group, Inc. provides its services in a range of markets, including construction, construction management, power, and facility operations and maintenance services. The company was formerly known as Telesource International, Inc. and changed its name to Pernix Group, Inc. Pernix Group, Inc. was founded in 1994 and is headquartered in Lombard, Illinois.
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