Can PulteGroup Outrun Lennar in the Next Rally?
Lennar surged 17% during the past Week. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer PulteGroup gives you more. PulteGroup (PHM) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Lennar (LEN) stock, suggesting you may be better off investing in PHM
- PHM’s quarterly revenue growth was -1.6%, vs. LEN’s -6.4%.
- In addition, its Last 12 Months revenue growth came in at 1.8%, ahead of LEN’s -4.7%.
- PHM leads on profitability over both periods – LTM margin of 19.3% and 3-year average of 20.6%.
These differences become even clearer when you look at the financials side by side. The table highlights how LEN’s fundamentals stack up against those of PHM on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| LEN | PHM | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 9.1 | 7.7 | PHM |
| Revenue Growth | |||
| Last Quarter | -6.4% | -1.6% | PHM |
| Last 12 Months | -4.7% | 1.8% | PHM |
| Last 3 Year Average | 3.0% | 5.4% | PHM |
| Operating Margins | |||
| Last 12 Months | 10.0% | 19.3% | PHM |
| Last 3 Year Average | 13.6% | 20.6% | PHM |
| Momentum | |||
| Last 3 Year Return | 30.3% | 169.8% | PHM |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: LEN Revenue Comparison | PHM Revenue Comparison
See more margin details: LEN Operating Income Comparison | PHM Operating Income Comparison
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See detailed fundamentals on Buy or Sell PHM Stock and Buy or Sell LEN Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| LEN Return | 54% | -21% | 67% | -7% | -23% | 20% | 74% | ||
| PHM Return | 34% | -19% | 129% | 6% | 9% | 14% | 225% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 2% | 85% | ||
| Monthly Win Rates [3] | |||||||||
| LEN Win Rate | 75% | 42% | 58% | 67% | 33% | 100% | 62% | ||
| PHM Win Rate | 67% | 42% | 58% | 58% | 50% | 100% | 62% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 100% | 71% | <=== | |
| Max Drawdowns [4] | |||||||||
| LEN Max Drawdown | -4% | -44% | 0% | -7% | -24% | 0% | -13% | ||
| PHM Max Drawdown | -5% | -36% | 0% | -3% | -15% | 0% | -10% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | 0% | -7% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 1/14/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read PHM Dip Buyer Analyses and LEN Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about LEN or PHM? Consider portfolio approach.
Multi Asset Portfolios Offer More Upside With Less Risk
Individual stocks can soar or tank but multi asset exposure steadies the ride. A spread out portfolio captures upside while limiting the damage from any one market.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices