LEN-B vs. HD

Last updated Jun 3, 2026

LEN-B (Lennar Corporation) and HD (The Home Depot, Inc.) are both stocks. Both are in the Consumer Cyclical sector — LEN-B in Residential Construction, HD in Home Improvement Retail. Over the past 10 years, LEN-B returned 11.39%/yr vs 11.57%/yr for HD. A 0.52 correlation means they provide meaningful diversification when combined.

Performance

LEN-B vs. HD - Performance Comparison

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

Returns By Period

In the year-to-date period, LEN-B achieves a -5.28% return, which is significantly higher than HD's -8.86% return. Both investments have delivered pretty close results over the past 10 years, with LEN-B having a 11.39% annualized return and HD not far ahead at 11.57%.

LEN-B

• 1D: 1.51%
• 1M: 3.33%
• YTD: -5.28%
• 6M: -25.66%
• 1Y: -9.35%
• 3Y*: -0.21%
• 5Y*: 6.47%
• 10Y*: 11.39%

HD

• 1D: 0.27%
• 1M: -3.82%
• YTD: -8.86%
• 6M: -10.85%
• 1Y: -13.20%
• 3Y*: 4.08%
• 5Y*: 2.37%
• 10Y*: 11.57%

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

LEN-B vs. HD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LEN-B Lennar Corporation	-5.28%	-22.92%	-0.04%	82.02%	-20.04%	58.29%	38.63%	43.24%	-39.16%	53.36%
HD The Home Depot, Inc.	-8.86%	-9.33%	15.00%	12.77%	-21.98%	59.51%	24.50%	30.56%	-7.30%	44.61%

Correlation

The correlation between LEN-B and HD is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Apr 24, 2003	0.52

The correlation between LEN-B and HD shifts across timeframes, from 0.52 (all time) to 0.63 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

EPS LEN-B : $8.18 HD : $14.08
PE Ratio LEN-B : 10.90 HD : 22.13
PS Ratio LEN-B : 0.66 HD : 1.86
Total Revenue (TTM) LEN-B : $34.13B HD : $166.59B
Gross Profit (TTM) LEN-B : $6.01B HD : $55.19B
EBITDA (TTM) LEN-B : $2.95B HD : $23.12B

Return for Risk

LEN-B vs. HD — Risk / Return Rank

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

LEN-B

LEN-B Risk / Return Rank: 30
LEN-B Sharpe Ratio Rank: 30
LEN-B Sortino Ratio Rank: 28
LEN-B Omega Ratio Rank: 28
LEN-B Calmar Ratio Rank: 32
LEN-B Martin Ratio Rank: 32

HD

HD Risk / Return Rank: 19
HD Sharpe Ratio Rank: 16
HD Sortino Ratio Rank: 15
HD Omega Ratio Rank: 17
HD Calmar Ratio Rank: 24
HD Martin Ratio Rank: 21

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.

LEN-B vs. HD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Lennar Corporation (LEN-B) and The Home Depot, Inc. (HD). 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.

	LEN-B	HD	Difference
Sharpe ratio Return per unit of total volatility	-0.25	-0.56	+0.32
Sortino ratio Return per unit of downside risk	-0.11	-0.70	+0.59
Omega ratio Gain probability vs. loss probability	0.99	0.92	+0.07
Calmar ratio Return relative to maximum drawdown	-0.25	-0.46	+0.21
Martin ratio Return relative to average drawdown	-0.47	-0.97	+0.50
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LEN-B vs. HD - Sharpe Ratio Comparison

The current LEN-B Sharpe Ratio is -0.25, which is higher than the HD Sharpe Ratio of -0.56. The chart below compares the historical Sharpe Ratios of LEN-B and HD, 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

	LEN-B	HD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.25	-0.56	+0.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.19	0.10	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.47	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.14	0.68	-0.54

Drawdowns

LEN-B vs. HD - Drawdown Comparison

The maximum LEN-B drawdown since its inception was -95.76%, which is greater than HD's maximum drawdown of -70.46%. Use the drawdown chart below to compare losses from any high point for LEN-B and HD.

Drawdown Indicators

	LEN-B	HD	Difference
Max Drawdown Largest peak-to-trough decline	-95.76%	-70.46%	-25.30%
Max Drawdown (1Y) Largest decline over 1 year	-40.29%	-28.81%	-11.48%
Max Drawdown (3Y) Largest decline over 3 years	-50.66%	-28.84%	-21.82%
Max Drawdown (5Y) Largest decline over 5 years	-50.66%	-34.73%	-15.93%
Max Drawdown (10Y) Largest decline over 10 years	-62.05%	-37.99%	-24.06%
Current Drawdown Current decline from peak	-45.21%	-25.49%	-19.72%
Average Drawdown Average peak-to-trough decline	-34.78%	-20.60%	-14.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	21.79%	13.73%	+8.06%

Volatility

LEN-B vs. HD - Volatility Comparison

Lennar Corporation (LEN-B) has a higher volatility of 11.87% compared to The Home Depot, Inc. (HD) at 7.94%. This indicates that LEN-B's price experiences larger fluctuations and is considered to be riskier than HD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LEN-B	HD	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.87%	7.94%	+3.93%
Volatility (6M) Calculated over the trailing 6-month period	26.00%	17.69%	+8.31%
Volatility (1Y) Calculated over the trailing 1-year period	37.81%	23.45%	+14.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	34.62%	24.05%	+10.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.90%	24.82%	+13.08%

Dividends

LEN-B vs. HD - Dividend Comparison

LEN-B's dividend yield for the trailing twelve months is around 2.24%, less than HD's 2.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HD The Home Depot, Inc.	2.96%	2.67%	2.31%	2.41%	2.41%	1.59%	2.26%	2.49%	2.40%	1.88%	2.06%	1.78%
LEN-B Lennar Corporation	2.24%	2.10%	1.51%	1.12%	2.01%	1.05%	1.02%	0.36%	0.51%	0.30%	0.46%	0.40%

Financials

LEN-B vs. HD - Profitability Comparison

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

LEN-B - 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%.

HD - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Home Depot, Inc. reported a gross profit of 13.78B and revenue of 41.77B. Therefore, the gross margin over that period was 33.0%.

LEN-B - 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%.

HD - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Home Depot, Inc. reported an operating income of 4.98B and revenue of 41.77B, resulting in an operating margin of 11.9%.

LEN-B - 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%.

HD - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Home Depot, Inc. reported a net income of 3.29B and revenue of 41.77B, resulting in a net margin of 7.9%.

Frequently Asked Questions

Can I hold both LEN-B and HD in my portfolio?

LEN-B and HD have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LEN-B or HD?

LEN-B has higher volatility (11.87%) compared to HD (7.94%). In terms of maximum drawdown, LEN-B dropped -95.76% vs HD's -70.46%.

Which has better risk-adjusted returns?

LEN-B currently has the higher Sharpe Ratio (-0.25 vs -0.56), 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.