DR Horton Inc (DHI)vsLGI Homes (LGIH)
DHI
DR Horton Inc
$137.69
-0.46%
CONSUMER CYCLICAL · Cap: $40.27B
LGIH
LGI Homes
$39.34
+5.33%
CONSUMER CYCLICAL · Cap: $910.06M
Smart Verdict
WallStSmart Research — data-driven comparison
DR Horton Inc generates 1866% more annual revenue ($33.52B vs $1.71B). DHI leads profitability with a 10.0% profit margin vs 4.3%. LGIH appears more attractively valued with a PEG of 0.69. DHI earns a higher WallStSmart Score of 55/100 (C).
DHI
Buy55
out of 100
Grade: C
LGIH
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-119.5%
Fair Value
$74.66
Current Price
$137.69
$63.03 premium
Margin of Safety
-187.1%
Fair Value
$21.22
Current Price
$39.34
$18.12 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Weak financial health signals
Revenue declined 9.5%
Earnings declined 22.2%
Smaller company, higher risk/reward
ROE of 3.5% — below average capital efficiency
4.3% margin — thin
Operating margin of 4.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : DHI
The strongest argument for DHI centers on Altman Z-Score, P/E Ratio, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bull Case : LGIH
The strongest argument for LGIH centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : DHI
The primary concerns for DHI are Piotroski F-Score, Revenue Growth, EPS Growth.
Bear Case : LGIH
The primary concerns for LGIH are Market Cap, Return on Equity, Profit Margin. Thin 4.3% margins leave little buffer for downturns.
Key Dynamics to Monitor
LGIH carries more volatility with a beta of 1.79 — expect wider price swings.
DHI is growing revenue faster at -9.5% — sustainability is the question.
DHI generates stronger free cash flow (827M), providing more financial flexibility.
Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DHI scores higher overall (55/100 vs 50/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
DR Horton Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
D.R. Horton, Inc. is a home construction company incorporated in Delaware and headquartered in Arlington, Texas.
LGI Homes
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
LGI Homes, Inc. designs, builds and sells homes in the United States. The company is headquartered in The Woodlands, Texas.
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