WallStSmart

Lennar Corporation (LEN)vsToll Brothers Inc (TOL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennar Corporation generates 204% more annual revenue ($32.74B vs $10.76B). TOL leads profitability with a 11.1% profit margin vs 4.9%. TOL appears more attractively valued with a PEG of 0.95. TOL earns a higher WallStSmart Score of 59/100 (C).

LEN

Hold

48

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 3.66

TOL

Buy

59

out of 100

Grade: C

Growth: 2.7Profit: 6.0Value: 6.7Quality: 8.0
Piotroski: 3/9Altman Z: 3.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LENUndervalued (+11.8%)

Margin of Safety

+11.8%

Fair Value

$137.20

Current Price

$76.43

$60.77 discount

UndervaluedFair: $137.20Overvalued
TOLSignificantly Overvalued (-38.5%)

Margin of Safety

-38.5%

Fair Value

$95.74

Current Price

$133.06

$37.32 premium

UndervaluedFair: $95.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LEN3 strengths · Avg: 9.3/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

TOL4 strengths · Avg: 9.5/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.958/10

Growing faster than its price suggests

Areas to Watch

LEN4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
11.302/10

Expensive relative to growth rate

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

Weak financial health signals

Revenue GrowthGrowth
-9.7%2/10

Revenue declined 9.7%

EPS GrowthGrowth
-20.4%2/10

Earnings declined 20.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : LEN

The strongest argument for LEN centers on Price/Book, Altman Z-Score, P/E Ratio.

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Price/Book, Altman Z-Score. PEG of 0.95 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 : TOL

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

Key Dynamics to Monitor

LEN profiles as a value stock while TOL is a declining play — different risk/reward profiles.

LEN carries more volatility with a beta of 1.40 — expect wider price swings.

LEN is growing revenue faster at -5.2% — sustainability is the question.

TOL generates stronger free cash flow (220M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (59/100 vs 48/100). Both earn "Buy" 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.

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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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