Q: Hi, I own MRE with some profit. Would a switch to LNR be a good strategic move for the future. How would you compare these two? I bought Magna recently and would keep it. Thanks
5i Research Answer:
MRE is very cheap, at 6X earnings, but so is LNR at 7X. LNR is about 4X as large as we see it as a better-managed company. MRE might have some takeover potential, but in a straight contest we would side with LNR. LNR is also diversifying its business to be less dependent on autos.