WallStSmart

Lennar Corporation (LEN-B)vsToll Brothers Inc (TOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennar Corporation generates 195% more annual revenue ($33.17B vs $11.25B). TOL leads profitability with a 12.3% profit margin vs 5.4%. LEN-B appears more attractively valued with a PEG of 0.52. TOL earns a higher WallStSmart Score of 73/100 (B).

LEN-B

Buy

53

out of 100

Grade: C-

Growth: 2.7Profit: 5.0Value: 8.7Quality: 8.5
Piotroski: 3/9Altman Z: 3.66

TOL

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 6.0Quality: 8.0
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LEN-BUndervalued (+88.7%)

Margin of Safety

+88.7%

Fair Value

$990.28

Current Price

$84.13

$906.15 discount

UndervaluedFair: $990.28Overvalued
TOLSignificantly Overvalued (-34.2%)

Margin of Safety

-34.2%

Fair Value

$120.36

Current Price

$141.60

$21.24 premium

UndervaluedFair: $120.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LEN-B5 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.528/10

Growing faster than its price suggests

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

TOL5 strengths · Avg: 8.8/10
P/E RatioValuation
10.0x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

EPS GrowthGrowth
25.1%8/10

Earnings expanding 25.1% YoY

Areas to Watch

LEN-B4 concerns · Avg: 2.8/10
Profit MarginProfitability
5.4%3/10

5.4% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-13.3%2/10

Revenue declined 13.3%

TOL2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.59M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : LEN-B

The strongest argument for LEN-B centers on Price/Book, Altman Z-Score, Debt/Equity. PEG of 0.52 suggests the stock is reasonably priced for its growth.

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. Revenue growth of 15.4% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bear Case : LEN-B

The primary concerns for LEN-B are Profit Margin, Operating Margin, Piotroski F-Score.

Bear Case : TOL

The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

LEN-B profiles as a value stock while TOL is a growth play — different risk/reward profiles.

TOL carries more volatility with a beta of 1.49 — expect wider price swings.

TOL is growing revenue faster at 15.4% — sustainability is the question.

TOL generates stronger free cash flow (-12M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (73/100 vs 53/100) and 15.4% revenue growth. LEN-B offers better value entry with a 88.7% margin of safety. Both earn "Strong 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.

Lennar Corporation

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Lennar Corporation is a home construction and real estate company based in Fontainebleau, Florida.

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Toll Brothers Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Toll Brothers, Inc. designs, builds, markets, sells and manages the financing of a variety of detached and attached homes in luxury residential communities in the United States. The company is headquartered in Horsham, Pennsylvania.

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