HOV vs. LEN

Last updated Jun 4, 2026

HOV (Hovnanian Enterprises, Inc.) and LEN (Lennar Corporation) are both stocks. Both operate in the Residential Construction industry within the Consumer Cyclical sector. Over the past 10 years, HOV returned 10.27%/yr vs 8.58%/yr for LEN. A 0.56 correlation means they provide meaningful diversification when combined.

Performance

HOV vs. LEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Hovnanian Enterprises, Inc. (HOV) and Lennar Corporation (LEN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HOV achieves a 13.08% return, which is significantly higher than LEN's -12.12% return. Over the past 10 years, HOV has outperformed LEN with an annualized return of 10.27%, while LEN has yielded a comparatively lower 8.58% annualized return.

HOV

• 1D: -3.97%
• 1M: 9.99%
• YTD: 13.08%
• 6M: -17.67%
• 1Y: 20.51%
• 3Y*: 7.75%
• 5Y*: -0.03%
• 10Y*: 10.27%

LEN

• 1D: -1.58%
• 1M: 6.05%
• YTD: -12.12%
• 6M: -32.14%
• 1Y: -14.57%
• 3Y*: -4.76%
• 5Y*: 0.65%
• 10Y*: 8.58%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HOV vs. LEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HOV Hovnanian Enterprises, Inc.	13.08%	-27.11%	-14.01%	269.82%	-66.94%	287.37%	57.45%	22.06%	-79.59%	22.71%
LEN Lennar Corporation	-12.12%	-20.80%	-7.32%	66.92%	-20.64%	53.99%	37.97%	42.96%	-37.91%	50.28%

Correlation

The correlation between HOV and LEN is 0.73, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Mar 18, 1992	0.56

The correlation between HOV and LEN shifts across timeframes, from 0.56 (all time) to 0.73 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

EPS HOV : $5.61 LEN : $8.18
PE Ratio HOV : 19.65 LEN : 10.93
PS Ratio HOV : 0.24 LEN : 0.67
Total Revenue (TTM) HOV : $2.92B LEN : $34.13B
Gross Profit (TTM) HOV : $2.17B LEN : $6.01B
EBITDA (TTM) HOV : $74.06M LEN : $2.95B

Return for Risk

HOV vs. LEN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HOV

HOV Risk / Return Rank: 52
HOV Sharpe Ratio Rank: 52
HOV Sortino Ratio Rank: 52
HOV Omega Ratio Rank: 52
HOV Calmar Ratio Rank: 52
HOV Martin Ratio Rank: 51

LEN

LEN Risk / Return Rank: 25
LEN Sharpe Ratio Rank: 23
LEN Sortino Ratio Rank: 22
LEN Omega Ratio Rank: 23
LEN Calmar Ratio Rank: 29
LEN Martin Ratio Rank: 28

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HOV vs. LEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Hovnanian Enterprises, Inc. (HOV) and Lennar Corporation (LEN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	HOV	LEN	Difference
Sharpe ratio Return per unit of total volatility	0.31	-0.39	+0.71
Sortino ratio Return per unit of downside risk	0.93	-0.35	+1.28
Omega ratio Gain probability vs. loss probability	1.12	0.96	+0.16
Calmar ratio Return relative to maximum drawdown	0.52	-0.35	+0.87
Martin ratio Return relative to average drawdown	0.91	-0.68	+1.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HOV vs. LEN - Sharpe Ratio Comparison

The current HOV Sharpe Ratio is 0.31, which is higher than the LEN Sharpe Ratio of -0.39. The chart below compares the historical Sharpe Ratios of HOV and LEN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HOV	LEN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.31	-0.39	+0.71
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.00	0.02	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.14	0.23	-0.10
Sharpe Ratio (All Time) Calculated using the full available price history	-0.02	0.32	-0.34

Drawdowns

HOV vs. LEN - Drawdown Comparison

The maximum HOV drawdown since its inception was -99.70%, which is greater than LEN's maximum drawdown of -94.28%. Use the drawdown chart below to compare losses from any high point for HOV and LEN.

Drawdown Indicators

	HOV	LEN	Difference
Max Drawdown Largest peak-to-trough decline	-99.70%	-94.28%	-5.42%
Max Drawdown (1Y) Largest decline over 1 year	-39.73%	-41.39%	+1.66%
Max Drawdown (3Y) Largest decline over 3 years	-63.12%	-54.51%	-8.61%
Max Drawdown (5Y) Largest decline over 5 years	-74.55%	-54.51%	-20.04%
Max Drawdown (10Y) Largest decline over 10 years	-93.52%	-58.80%	-34.72%
Current Drawdown Current decline from peak	-93.97%	-50.55%	-43.42%
Average Drawdown Average peak-to-trough decline	-70.25%	-26.28%	-43.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	22.51%	21.38%	+1.13%

Volatility

HOV vs. LEN - Volatility Comparison

Hovnanian Enterprises, Inc. (HOV) has a higher volatility of 23.69% compared to Lennar Corporation (LEN) at 10.10%. This indicates that HOV's price experiences larger fluctuations and is considered to be riskier than LEN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HOV	LEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	23.69%	10.10%	+13.59%
Volatility (6M) Calculated over the trailing 6-month period	48.72%	26.46%	+22.26%
Volatility (1Y) Calculated over the trailing 1-year period	65.74%	37.21%	+28.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	65.59%	34.45%	+31.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	75.71%	37.23%	+38.48%

Dividends

HOV vs. LEN - Dividend Comparison

HOV has not paid dividends to shareholders, while LEN's dividend yield for the trailing twelve months is around 2.24%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HOV Hovnanian Enterprises, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
LEN Lennar Corporation	2.24%	1.95%	1.47%	1.01%	1.66%	0.86%	0.82%	0.29%	0.41%	0.25%	0.37%	0.33%

Financials

HOV vs. LEN - Profitability Comparison

The chart below illustrates the profitability comparison between Hovnanian Enterprises, Inc. and Lennar Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

HOV - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Hovnanian Enterprises, Inc. reported a gross profit of 644.25M and revenue of 667.65M. Therefore, the gross margin over that period was 96.5%.

LEN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lennar Corporation reported a gross profit of 1.53B and revenue of 9.37B. Therefore, the gross margin over that period was 16.3%.

HOV - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Hovnanian Enterprises, Inc. reported an operating income of 587.25M and revenue of 667.65M, resulting in an operating margin of 88.0%.

LEN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lennar Corporation reported an operating income of 666.96M and revenue of 9.37B, resulting in an operating margin of 7.1%.

HOV - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Hovnanian Enterprises, Inc. reported a net income of -595.00K and revenue of 667.65M, resulting in a net margin of -0.1%.

LEN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lennar Corporation reported a net income of 490.24M and revenue of 9.37B, resulting in a net margin of 5.2%.

Frequently Asked Questions

Can I hold both HOV and LEN in my portfolio?

HOV and LEN have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HOV or LEN?

HOV has higher volatility (23.69%) compared to LEN (10.10%). In terms of maximum drawdown, HOV dropped -99.70% vs LEN's -94.28%.

Which has better risk-adjusted returns?

HOV currently has the higher Sharpe Ratio (0.31 vs -0.39), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.