Aterian (NASDAQ:ATER) and Lennar (NYSE:LEN) Head-To-Head Comparison

Aterian (NASDAQ:ATER) and Lennar (NYSE:LEN) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Aterian and Lennar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aterian	1	0	0	0	1.00
Lennar	9	7	1	0	1.53

Lennar has a consensus target price of $81.00, suggesting a potential downside of 1.22%. Given Lennar’s stronger consensus rating and higher possible upside, analysts plainly believe Lennar is more favorable than Aterian.

Earnings and Valuation

This table compares Aterian and Lennar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aterian	$68.97 million	0.09	-$18.98 million	($1.99)	-0.33
Lennar	$34.19 billion	0.58	$2.08 billion	$5.29	15.50

Lennar has higher revenue and earnings than Aterian. Aterian is trading at a lower price-to-earnings ratio than Lennar, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aterian	-49.30%	-92.04%	-47.83%
Lennar	4.09%	6.15%	4.00%

Risk and Volatility

Aterian has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Lennar has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

7.0% of Aterian shares are held by institutional investors. Comparatively, 81.1% of Lennar shares are held by institutional investors. 19.5% of Aterian shares are held by insiders. Comparatively, 10.1% of Lennar shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Lennar beats Aterian on 13 of the 14 factors compared between the two stocks.

About Aterian

Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.

About Lennar

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company’s 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; and development, construction, and management of multifamily rental properties. It also offers residential mortgage financing, title, insurance, and closing services for home buyers and others, as well as originates and sells securitization commercial mortgage loans. In addition, the company is involved in the fund investment activity. It primarily serves first-time, move-up, active adult, and luxury homebuyers. Lennar Corporation was founded in 1954 and is based in Miami, Florida.