Lennar Corporation (LEN)vsLGI Homes (LGIH)
LEN
Lennar Corporation
$91.59
-0.65%
CONSUMER CYCLICAL · Cap: $19.85B
LGIH
LGI Homes
$47.15
-3.58%
CONSUMER CYCLICAL · Cap: $1.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Lennar Corporation generates 1800% more annual revenue ($31.97B vs $1.68B). LEN leads profitability with a 4.1% profit margin vs 3.9%. LGIH appears more attractively valued with a PEG of 0.69. LGIH earns a higher WallStSmart Score of 55/100 (C).
LEN
Hold48
out of 100
Grade: D+
LGIH
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+10.1%
Fair Value
$134.58
Current Price
$91.59
$42.99 discount
Margin of Safety
+11.8%
Fair Value
$69.04
Current Price
$47.15
$21.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
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
ROE of 6.1% — below average capital efficiency
4.1% margin — thin
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 3.1% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : LEN
The strongest argument for LEN centers on Price/Book, Altman Z-Score, Debt/Equity.
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 : LEN
The primary concerns for LEN are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.1% margins leave little buffer for downturns.
Bear Case : LGIH
The primary concerns for LGIH are Market Cap, Return on Equity, Profit Margin. Thin 3.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LGIH carries more volatility with a beta of 1.86 — expect wider price swings.
LGIH is growing revenue faster at 5.7% — sustainability is the question.
LGIH generates stronger free cash flow (114M), providing more financial flexibility.
Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LGIH scores higher overall (55/100 vs 48/100). 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.
Lennar Corporation
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Lennar Corporation is a home construction and real estate company based in Fontainebleau, Florida.
Visit Website →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.
Visit Website →Compare with Other RESIDENTIAL CONSTRUCTION Stocks
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