Pernix Group (PRXG) vs. Lennar (LEN) Financial Analysis

Pernix Group (OTCMKTS:PRXG) and Lennar (NYSE:LEN) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Profitability

This table compares Pernix Group and Lennar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pernix Group N/A N/A N/A
Lennar 6.76% 12.87% 6.10%

Insider and Institutional Ownership

84.9% of Lennar shares are held by institutional investors. 0.1% of Pernix Group shares are held by insiders. Comparatively, 8.5% of Lennar shares are held 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pernix Group and Lennar, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pernix Group 0 0 0 0 N/A
Lennar 0 1 16 0 2.94

Lennar has a consensus price target of $62.87, suggesting a potential upside of 47.16%. Given Lennar’s higher probable upside, analysts plainly believe Lennar is more favorable than Pernix Group.

Dividends

Lennar pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. Pernix Group does not pay a dividend. Lennar pays out 4.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Pernix Group and Lennar’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pernix Group $195.49 million 0.03 -$18.84 million N/A N/A
Lennar $12.65 billion 1.12 $810.48 million $3.81 11.21

Lennar has higher revenue and earnings than Pernix Group.

Risk & Volatility

Pernix Group has a beta of -3.82, meaning that its share price is 482% less volatile than the S&P 500. Comparatively, Lennar has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Summary

Lennar beats Pernix Group on 12 of the 13 factors compared between the two stocks.

Pernix Group Company Profile

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.

Lennar Company Profile

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. The company operates through Homebuilding East, Homebuilding Central, Homebuilding West, Lennar Financial Services, Rialto, and Lennar Multifamily segments. 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. The company primarily sells single-family attached and detached homes in communities targeted to first-time homebuyers, move-up homebuyers, active adult homebuyers, and luxury homebuyers. The company also offers mortgage financing, title insurance, and closing services for home buyers and others, as well as real estate brokerage services. In addition, it is involved in raising, investing, and managing third party capital; and originating and selling into securitizations commercial mortgage loans, as well as investing in real estate related mortgage loans, properties, and related securities. Further, the company sponsors and invests in private equity vehicles; and provides asset management and other services to the vehicles and other third parties. Additionally, it develops, constructs, and manages multifamily rental properties. Lennar Corporation was founded in 1954 and is based in Miami, Florida.

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