WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toll Brothers Inc generates 6665% more annual revenue ($11.05B vs $163.26M). LEGH leads profitability with a 26.0% profit margin vs 11.7%. LEGH appears more attractively valued with a PEG of 0.61. LEGH earns a higher WallStSmart Score of 65/100 (C+).

LEGH

Buy

65

out of 100

Grade: C+

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

TOL

Buy

61

out of 100

Grade: C+

Growth: 2.7Profit: 7.0Value: 6.0Quality: 8.0
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LEGHSignificantly Overvalued (-75.8%)

Margin of Safety

-75.8%

Fair Value

$12.31

Current Price

$23.22

$10.91 premium

UndervaluedFair: $12.31Overvalued
TOLSignificantly Overvalued (-53.9%)

Margin of Safety

-53.9%

Fair Value

$95.60

Current Price

$137.42

$41.82 premium

UndervaluedFair: $95.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

TOL3 strengths · Avg: 9.3/10
P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

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%

TOL3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-7.6%2/10

Revenue declined 7.6%

EPS GrowthGrowth
-22.3%2/10

Earnings declined 22.3%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bear Case : LEGH

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

Bear Case : TOL

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

Key Dynamics to Monitor

TOL carries more volatility with a beta of 1.37 — expect wider price swings.

LEGH is growing revenue faster at -3.7% — sustainability is the question.

TOL generates stronger free cash flow (110M), providing more financial flexibility.

Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LEGH scores higher overall (65/100 vs 61/100), 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.

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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