LEN vs. MTH

Last updated Jun 24, 2026

LEN (Lennar Corporation) and MTH (Meritage Homes Corporation) are both stocks. Both operate in the Residential Construction industry within the Consumer Cyclical sector. Over the past 10 years, LEN returned 8.56%/yr vs 16.07%/yr for MTH. A 0.53 correlation means they provide meaningful diversification when combined.

Performance

LEN vs. MTH - Performance Comparison

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

Returns By Period

In the year-to-date period, LEN achieves a -14.20% return, which is significantly lower than MTH's 16.53% return. Over the past 10 years, LEN has underperformed MTH with an annualized return of 8.56%, while MTH has yielded a comparatively higher 16.07% annualized return.

LEN

• 1D: -0.10%
• 1M: -1.70%
• YTD: -14.20%
• 6M: -15.79%
• 1Y: -19.58%
• 3Y*: -8.25%
• 5Y*: 0.03%
• 10Y*: 8.56%

MTH

• 1D: 0.69%
• 1M: 18.48%
• YTD: 16.53%
• 6M: 16.70%
• 1Y: 15.88%
• 3Y*: 5.41%
• 5Y*: 11.61%
• 10Y*: 16.07%

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

LEN vs. MTH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LEN Lennar Corporation	-14.20%	-20.80%	-7.32%	66.92%	-20.64%	53.99%	37.97%	42.96%	-37.91%	50.28%
MTH Meritage Homes Corporation	16.53%	-12.32%	-10.16%	90.53%	-24.46%	47.38%	35.53%	66.42%	-28.28%	47.13%

Correlation

The correlation between LEN and MTH is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Dec 16, 1988	0.53

Over the past year, LEN and MTH have become more correlated (0.81) than their long-term average of 0.53, meaning their price movements have been converging.

Fundamentals

Market Cap LEN : $21.19B MTH : $5.09B
EPS LEN : $7.91 MTH : $5.52
PE Ratio LEN : 11.05 MTH : 13.70
PS Ratio LEN : 0.66 MTH : 0.94
Total Revenue (TTM) LEN : $32.74B MTH : $5.61B
Gross Profit (TTM) LEN : $1.72B MTH : $1.05B
EBITDA (TTM) LEN : $2.36B MTH : $575.32M

Return for Risk

LEN vs. MTH — Risk / Return Rank

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

LEN

LEN Risk / Return Rank: 22
LEN Sharpe Ratio Rank: 19
LEN Sortino Ratio Rank: 19
LEN Omega Ratio Rank: 20
LEN Calmar Ratio Rank: 26
LEN Martin Ratio Rank: 25

MTH

MTH Risk / Return Rank: 55
MTH Sharpe Ratio Rank: 57
MTH Sortino Ratio Rank: 55
MTH Omega Ratio Rank: 51
MTH Calmar Ratio Rank: 56
MTH Martin Ratio Rank: 55

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 vs. MTH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Lennar Corporation (LEN) and Meritage Homes Corporation (MTH). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LEN	MTH	Difference
Sharpe ratio: Return per unit of total volatility	-0.52	0.41	-0.93
Sortino ratio: Return per unit of downside risk	-0.58	0.95	-1.53
Omega ratio: Gain probability vs. loss probability	0.93	1.10	-0.17
Calmar ratio: Return relative to maximum drawdown	-0.47	0.58	-1.05
Martin ratio: Return relative to average drawdown	-0.86	1.10	-1.96

LEN vs. MTH - Sharpe Ratio Comparison

The current LEN Sharpe Ratio is -0.52, which is lower than the MTH Sharpe Ratio of 0.41. The chart below compares the historical Sharpe Ratios of LEN and MTH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LEN vs. MTH - Drawdown Comparison

The maximum LEN drawdown since its inception was -94.28%, roughly equal to the maximum MTH drawdown of -93.22%. Use the drawdown chart below to compare losses from any high point for LEN and MTH.

Drawdown Indicators

	LEN	MTH	Difference
Max Drawdown Largest peak-to-trough decline	-94.28%	-93.22%	-1.06%
Max Drawdown (1Y) Largest decline over 1 year	-41.39%	-27.68%	-13.71%
Max Drawdown (3Y) Largest decline over 3 years	-54.51%	-42.95%	-11.56%
Max Drawdown (5Y) Largest decline over 5 years	-54.51%	-46.77%	-7.74%
Max Drawdown (10Y) Largest decline over 10 years	-58.80%	-64.27%	+5.47%
Current Drawdown Current decline from peak	-51.71%	-26.12%	-25.59%
Average Drawdown Average peak-to-trough decline	-26.31%	-47.56%	+21.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	22.86%	14.49%	+8.37%

Volatility

LEN vs. MTH - Volatility Comparison

Lennar Corporation (LEN) and Meritage Homes Corporation (MTH) have volatilities of 11.29% and 11.11%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LEN	MTH	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.29%	11.11%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	26.93%	27.50%	-0.57%
Volatility (1Y) Calculated over the trailing 1-year period	37.77%	39.07%	-1.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	34.64%	38.84%	-4.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.35%	42.57%	-5.22%

Dividends

LEN vs. MTH - Dividend Comparison

LEN's dividend yield for the trailing twelve months is around 2.29%, less than MTH's 2.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LEN Lennar Corporation	2.29%	1.95%	1.47%	1.01%	1.66%	0.86%	0.82%	0.29%	0.41%	0.25%	0.37%	0.33%
MTH Meritage Homes Corporation	2.41%	2.61%	1.95%	0.62%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

LEN vs. MTH - Profitability Comparison

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

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 -390.70M and revenue of 7.94B. Therefore, the gross margin over that period was -4.9%.

MTH - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Meritage Homes Corporation reported a gross profit of 193.80M and revenue of 1.12B. Therefore, the gross margin over that period was 17.4%.

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 629.34M and revenue of 7.94B, resulting in an operating margin of 7.9%.

MTH - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Meritage Homes Corporation reported an operating income of 142.40M and revenue of 1.12B, resulting in an operating margin of 12.8%.

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 656.43M and revenue of 7.94B, resulting in a net margin of 8.3%.

MTH - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Meritage Homes Corporation reported a net income of 55.31M and revenue of 1.12B, resulting in a net margin of 5.0%.

Frequently Asked Questions

Can I hold both LEN and MTH in my portfolio?

LEN and MTH have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LEN or MTH?

LEN has higher volatility (11.29%) compared to MTH (11.11%). In terms of maximum drawdown, LEN dropped -94.28% vs MTH's -93.22%.

Which has better risk-adjusted returns?

MTH currently has the higher Sharpe Ratio (0.41 vs -0.52), 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.