WallStSmart

DR Horton Inc (DHI)vsLegacy Housing Corp (LEGH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

DR Horton Inc generates 20326% more annual revenue ($33.35B vs $163.26M). LEGH leads profitability with a 26.0% profit margin vs 9.5%. LEGH appears more attractively valued with a PEG of 0.61. LEGH earns a higher WallStSmart Score of 65/100 (C+).

DHI

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 6.0Value: 5.3Quality: 8.5
Piotroski: 3/9Altman Z: 5.10

LEGH

Buy

65

out of 100

Grade: C+

Growth: 3.3Profit: 7.5Value: 6.0Quality: 8.5
Piotroski: 2/9Altman Z: 7.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DHISignificantly Overvalued (-52.8%)

Margin of Safety

-52.8%

Fair Value

$100.86

Current Price

$146.49

$45.63 premium

UndervaluedFair: $100.86Overvalued
LEGHSignificantly Overvalued (-75.8%)

Margin of Safety

-75.8%

Fair Value

$12.31

Current Price

$23.22

$10.91 premium

UndervaluedFair: $12.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DHI4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
5.1010/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

LEGH6 strengths · Avg: 9.5/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.8310/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
26.0%9/10

Keeps 26 of every $100 in revenue as profit

PEG RatioValuation
0.618/10

Growing faster than its price suggests

Areas to Watch

DHI4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.3%2/10

Revenue declined 2.3%

EPS GrowthGrowth
-13.2%2/10

Earnings declined 13.2%

Free Cash FlowQuality
$-449.70M2/10

Negative free cash flow — burning cash

LEGH4 concerns · Avg: 2.8/10
Market CapQuality
$566.72M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.7%2/10

Revenue declined 3.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : DHI

The strongest argument for DHI centers on Altman Z-Score, Debt/Equity, P/E Ratio. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bull Case : LEGH

The strongest argument for LEGH centers on Price/Book, Operating Margin, Debt/Equity. Profitability is solid with margins at 26.0% and operating margin at 36.0%. PEG of 0.61 suggests the stock is reasonably priced for its growth.

Bear Case : DHI

The primary concerns for DHI are Piotroski F-Score, Revenue Growth, EPS Growth.

Bear Case : LEGH

The primary concerns for LEGH are Market Cap, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

DHI profiles as a value stock while LEGH is a declining play — different risk/reward profiles.

DHI carries more volatility with a beta of 1.38 — expect wider price swings.

DHI is growing revenue faster at -2.3% — sustainability is the question.

LEGH generates stronger free cash flow (5M), providing more financial flexibility.

Bottom Line

LEGH scores higher overall (65/100 vs 55/100), backed by strong 26.0% margins. 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.

DR Horton Inc

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

D.R. Horton, Inc. is a home construction company incorporated in Delaware and headquartered in Arlington, Texas.

Legacy Housing Corp

CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA

Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny homes primarily in the southern United States. The company is headquartered in Bedford, Texas.

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