Lennar Corporation (LEN)vsLGI Homes (LGIH)
LEN
Lennar Corporation
$92.19
-0.21%
CONSUMER CYCLICAL · Cap: $22.88B
LGIH
LGI Homes
$39.34
+5.33%
CONSUMER CYCLICAL · Cap: $792.08M
Smart Verdict
WallStSmart Research — data-driven comparison
Lennar Corporation generates 1845% more annual revenue ($33.17B vs $1.71B). LEN leads profitability with a 5.4% profit margin vs 4.3%. LGIH appears more attractively valued with a PEG of 0.69. LGIH earns a higher WallStSmart Score of 50/100 (C-).
LEN
Hold47
out of 100
Grade: D+
LGIH
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-156.0%
Fair Value
$47.26
Current Price
$92.19
$44.93 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
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Generating 1.7B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
5.4% margin — thin
Operating margin of 3.7%
Weak financial health signals
Expensive relative to growth rate
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 : 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 P/E Ratio, Price/Book, Altman Z-Score. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : LEN
The primary concerns for LEN are Profit Margin, Operating Margin, Piotroski F-Score.
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.
LEN is growing revenue faster at -13.3% — sustainability is the question.
LEN generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LGIH scores higher overall (50/100 vs 47/100). 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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