DR Horton Inc (DHI)vsLGI Homes (LGIH)
DHI
DR Horton Inc
$147.63
+1.14%
CONSUMER CYCLICAL · Cap: $41.39B
LGIH
LGI Homes
$46.67
+0.82%
CONSUMER CYCLICAL · Cap: $1.08B
Smart Verdict
WallStSmart Research — data-driven comparison
DR Horton Inc generates 1892% more annual revenue ($33.35B vs $1.67B). DHI leads profitability with a 9.5% profit margin vs 4.2%. 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
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.1%
Fair Value
$124.94
Current Price
$147.63
$22.69 premium
Margin of Safety
+28.7%
Fair Value
$85.48
Current Price
$46.67
$38.81 discount
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 2.3%
Earnings declined 13.2%
Negative free cash flow — burning cash
Smaller company, higher risk/reward
ROE of 3.4% — below average capital efficiency
4.2% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DHI
The strongest argument for DHI centers on Altman Z-Score, P/E Ratio, Price/Book. PEG of 1.37 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 4.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
LGIH carries more volatility with a beta of 1.90 — expect wider price swings.
DHI is growing revenue faster at -2.3% — sustainability is the question.
LGIH generates stronger free cash flow (-56M), providing more financial flexibility.
Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DHI scores higher overall (55/100 vs 49/100). LGIH offers better value entry with a 28.7% margin of safety. Both earn "Buy" and "Hold" 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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