LEN vs SHW vs MAS vs IBP

For growth investors, The Sherwin-Williams Company (SHW) is the stronger pick with 2.

1% revenue growth year-over-year, versus -3. 6% for Lennar Corporation (LEN). Lennar Corporation (LEN) offers the better valuation at 11. 0x trailing P/E (14. 2x forward), making it the more compelling value choice. Analysts rate Lennar Corporation (LEN) a "Buy" — based on 50 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Lennar Corporation (LEN) is the cheapest at 11.

0x versus The Sherwin-Williams Company at 31. 2x. On forward P/E, Lennar Corporation is actually cheaper at 14. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Installed Building Products, Inc. wins at 0. 80x versus Lennar Corporation's 43. 27x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Installed Building Products, Inc.

(IBP) delivered a total return of +80. 6%, compared to -11. 1% for Lennar Corporation (LEN). Over 10 years, the gap is even starker: IBP returned +650. 1% versus LEN's +122. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Sherwin-Williams Company (SHW) is the lower-risk stock at 0.

79β versus Masco Corporation's 1. 28β — meaning MAS is approximately 62% more volatile than SHW relative to the S&P 500. On balance sheet safety, Lennar Corporation (LEN) carries a lower debt/equity ratio of 29% versus 46% for Masco Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Sherwin-Williams Company (SHW) is pulling ahead at 2.

1% versus -3. 6% for Lennar Corporation (LEN). On earnings-per-share growth, the picture is similar: Installed Building Products, Inc. grew EPS 6. 7% year-over-year, compared to -44. 2% for Lennar Corporation. Over a 3-year CAGR, IBP leads at 3. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Sherwin-Williams Company (SHW) is the more profitable company, earning 10.

9% net margin versus 6. 0% for Lennar Corporation — meaning it keeps 10. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MAS leads at 16. 8% versus 8. 0% for LEN. At the gross margin level — before operating expenses — SHW leads at 48. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Installed Building Products, Inc. (IBP) is the more undervalued stock at a PEG of 0. 80x versus Lennar Corporation's 43. 27x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Lennar Corporation (LEN) trades at 14. 2x forward P/E versus 27. 3x for The Sherwin-Williams Company — 13. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for IBP: 35. 2% to $293. 00.

All stocks in this comparison pay dividends.

Lennar Corporation (LEN) offers the highest yield at 2. 3%, versus 1. 0% for The Sherwin-Williams Company (SHW).

For long-horizon retirement investors, The Sherwin-Williams Company (SHW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

79), 1. 0% yield, +250. 0% 10Y return). Both have compounded well over 10 years (SHW: +250. 0%, MAS: +152. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (LEN (Consumer Cyclical) and SHW (Basic Materials) and MAS (Industrials) and IBP (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: LEN is a mid-cap deep-value stock; SHW is a mid-cap quality compounder stock; MAS is a mid-cap quality compounder stock; IBP is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.