Lennar Corporation (LEN)vsLGI Homes (LGIH)
LEN
Lennar Corporation
$87.44
-1.51%
CONSUMER CYCLICAL · Cap: $22.24B
LGIH
LGI Homes
$55.15
-0.51%
CONSUMER CYCLICAL · Cap: $1.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Lennar Corporation generates 1856% more annual revenue ($32.74B vs $1.67B). LEN leads profitability with a 4.9% profit margin vs 4.2%. LGIH appears more attractively valued with a PEG of 0.69. LGIH earns a higher WallStSmart Score of 49/100 (D+).
LEN
Hold46
out of 100
Grade: D+
LGIH
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+11.0%
Fair Value
$136.01
Current Price
$87.44
$48.57 discount
Margin of Safety
+12.9%
Fair Value
$69.93
Current Price
$55.15
$14.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
ROE of 7.5% — below average capital efficiency
4.9% margin — thin
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 3.4% — below average capital efficiency
4.2% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : LEN
The strongest argument for LEN centers on Price/Book, Altman Z-Score, Debt/Equity.
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.
Bear Case : LEN
The primary concerns for LEN are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.9% margins leave little buffer for downturns.
Bear Case : LGIH
The primary concerns for LGIH are Market Cap, Return on Equity, Profit Margin. Thin 4.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
LGIH carries more volatility with a beta of 1.89 — expect wider price swings.
LEN is growing revenue faster at -5.2% — sustainability is the question.
LGIH generates stronger free cash flow (-56M), providing more financial flexibility.
Monitor RESIDENTIAL CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LGIH scores higher overall (49/100 vs 46/100). Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Lennar Corporation
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
Lennar Corporation is a home construction and real estate company based in Fontainebleau, Florida.
Visit Website →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 →Compare with Other RESIDENTIAL CONSTRUCTION Stocks
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