LGI Homes (LGIH)vsToll Brothers Inc (TOL)
LGIH
LGI Homes
$39.34
+5.33%
CONSUMER CYCLICAL · Cap: $910.06M
TOL
Toll Brothers Inc
$136.91
+0.33%
CONSUMER CYCLICAL · Cap: $12.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Toll Brothers Inc generates 560% more annual revenue ($11.25B vs $1.71B). TOL leads profitability with a 12.3% profit margin vs 4.3%. LGIH appears more attractively valued with a PEG of 0.69. TOL earns a higher WallStSmart Score of 75/100 (B+).
LGIH
Buy50
out of 100
Grade: C-
TOL
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-187.1%
Fair Value
$21.22
Current Price
$39.34
$18.12 premium
Margin of Safety
+74.4%
Fair Value
$629.93
Current Price
$136.91
$493.02 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
15.4% revenue growth
Earnings expanding 25.1% YoY
Areas to Watch
Smaller company, higher risk/reward
ROE of 3.5% — below average capital efficiency
4.3% margin — thin
Operating margin of 4.0%
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : TOL
The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, PEG Ratio. Revenue growth of 15.4% demonstrates continued momentum. PEG of 0.99 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 4.3% margins leave little buffer for downturns.
Bear Case : TOL
The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
LGIH profiles as a value stock while TOL is a growth play — different risk/reward profiles.
LGIH carries more volatility with a beta of 1.79 — expect wider price swings.
TOL is growing revenue faster at 15.4% — sustainability is the question.
LGIH generates stronger free cash flow (87M), providing more financial flexibility.
Bottom Line
TOL scores higher overall (75/100 vs 50/100) and 15.4% revenue growth. 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.
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 →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.
Visit Website →Compare with Other RESIDENTIAL CONSTRUCTION Stocks
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