WallStSmart

LGI Homes (LGIH)vsPulteGroup Inc (PHM)

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Smart Verdict

WallStSmart Research — data-driven comparison

PulteGroup Inc generates 849% more annual revenue ($15.98B vs $1.68B). PHM leads profitability with a 11.2% profit margin vs 3.9%. LGIH appears more attractively valued with a PEG of 0.69. PHM earns a higher WallStSmart Score of 59/100 (C).

LGIH

Buy

55

out of 100

Grade: C

Growth: 3.3Profit: 4.5Value: 7.3Quality: 7.5
Piotroski: 3/9Altman Z: 3.07

PHM

Buy

59

out of 100

Grade: C

Growth: 2.7Profit: 7.0Value: 6.3Quality: 9.0
Piotroski: 4/9Altman Z: 4.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LGIHUndervalued (+11.8%)

Margin of Safety

+11.8%

Fair Value

$69.04

Current Price

$47.15

$21.89 discount

UndervaluedFair: $69.04Overvalued

Intrinsic value data unavailable for PHM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LGIH4 strengths · Avg: 9.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.0710/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.698/10

Growing faster than its price suggests

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

PHM4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
4.6110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

LGIH4 concerns · Avg: 3.0/10
Market CapQuality
$1.03B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.1%3/10

ROE of 3.1% — below average capital efficiency

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PHM3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-9.8%2/10

Revenue declined 9.8%

EPS GrowthGrowth
-14.5%2/10

Earnings declined 14.5%

Free Cash FlowQuality
$-231.38M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PHM

The strongest argument for PHM centers on Altman Z-Score, Debt/Equity, P/E Ratio. PEG of 1.29 suggests the stock is reasonably priced for its growth.

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.

Bear Case : PHM

The primary concerns for PHM are Revenue Growth, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

LGIH profiles as a value stock while PHM is a declining play — different risk/reward profiles.

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.

Bottom Line

PHM scores higher overall (59/100 vs 55/100). Both earn "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.

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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PulteGroup Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

PulteGroup, Inc. (previously known as Pulte Homes) is a home construction company based in Atlanta, Georgia, United States.

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