WallStSmart

Legacy Housing Corp (LEGH)vsToll Brothers Inc (TOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toll Brothers Inc generates 6738% more annual revenue ($11.25B vs $164.57M). LEGH leads profitability with a 25.4% profit margin vs 12.3%. LEGH appears more attractively valued with a PEG of 0.61. TOL earns a higher WallStSmart Score of 75/100 (B+).

LEGH

Buy

59

out of 100

Grade: C

Growth: 2.0Profit: 8.0Value: 7.3Quality: 5.0

TOL

Strong Buy

75

out of 100

Grade: B+

Growth: 6.7Profit: 7.0Value: 10.0Quality: 8.5
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LEGHSignificantly Overvalued (-82.9%)

Margin of Safety

-82.9%

Fair Value

$11.83

Current Price

$20.18

$8.35 premium

UndervaluedFair: $11.83Overvalued
TOLUndervalued (+74.4%)

Margin of Safety

+74.4%

Fair Value

$629.93

Current Price

$136.91

$493.02 discount

UndervaluedFair: $629.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LEGH5 strengths · Avg: 9.0/10
P/E RatioValuation
11.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
25.4%9/10

Keeps 25 of every $100 in revenue as profit

PEG RatioValuation
0.618/10

Growing faster than its price suggests

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

TOL6 strengths · Avg: 8.7/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

EPS GrowthGrowth
25.1%8/10

Earnings expanding 25.1% YoY

Areas to Watch

LEGH3 concerns · Avg: 2.3/10
Market CapQuality
$459.34M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-29.4%2/10

Revenue declined 29.4%

EPS GrowthGrowth
-41.8%2/10

Earnings declined 41.8%

TOL2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.59M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : LEGH

The strongest argument for LEGH centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 25.4% and operating margin at 26.9%. PEG of 0.61 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 : LEGH

The primary concerns for LEGH are Market Cap, Revenue Growth, EPS Growth.

Bear Case : TOL

The primary concerns for TOL are Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

LEGH profiles as a declining stock while TOL is a growth play — different risk/reward profiles.

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

TOL is growing revenue faster at 15.4% — sustainability is the question.

LEGH generates stronger free cash flow (16M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (75/100 vs 59/100) 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.

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.

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.

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