WallStSmart

Lennar Corporation (LEN)vsMeritage Corporation (MTH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennar Corporation generates 466% more annual revenue ($33.17B vs $5.86B). MTH leads profitability with a 7.7% profit margin vs 5.4%. MTH appears more attractively valued with a PEG of 0.54. MTH earns a higher WallStSmart Score of 57/100 (C).

LEN

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 3.66

MTH

Buy

57

out of 100

Grade: C

Growth: 2.0Profit: 5.5Value: 7.3Quality: 7.3
Piotroski: 2/9Altman Z: 3.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LENSignificantly Overvalued (-156.0%)

Margin of Safety

-156.0%

Fair Value

$47.26

Current Price

$92.19

$44.93 premium

UndervaluedFair: $47.26Overvalued
MTHSignificantly Overvalued (-80.8%)

Margin of Safety

-80.8%

Fair Value

$43.18

Current Price

$61.59

$18.41 premium

UndervaluedFair: $43.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LEN5 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

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

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.67B8/10

Generating 1.7B in free cash flow

MTH4 strengths · Avg: 9.5/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.3810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.548/10

Growing faster than its price suggests

Areas to Watch

LEN4 concerns · Avg: 2.8/10
Profit MarginProfitability
5.4%3/10

5.4% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.162/10

Expensive relative to growth rate

MTH4 concerns · Avg: 2.5/10
Profit MarginProfitability
7.7%3/10

7.7% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-11.5%2/10

Revenue declined 11.5%

EPS GrowthGrowth
-48.8%2/10

Earnings declined 48.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : LEN

The strongest argument for LEN centers on Price/Book, Altman Z-Score, Debt/Equity.

Bull Case : MTH

The strongest argument for MTH centers on P/E Ratio, Price/Book, Altman Z-Score. PEG of 0.54 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 : MTH

The primary concerns for MTH are Profit Margin, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

MTH carries more volatility with a beta of 1.45 — expect wider price swings.

MTH is growing revenue faster at -11.5% — 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

MTH scores higher overall (57/100 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.

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Meritage Corporation

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Meritage Homes Corporation designs and builds single-family homes in the United States. The company is headquartered in Scottsdale, Arizona.

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