WallStSmart

Lennar Corporation (LEN)vsToll Brothers Inc (TOL)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Lennar Corporation generates 197% more annual revenue ($31.97B vs $10.76B). TOL leads profitability with a 11.1% profit margin vs 4.1%. TOL appears more attractively valued with a PEG of 0.91. 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: 8.5
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 (+10.3%)

Margin of Safety

+10.3%

Fair Value

$134.84

Current Price

$86.09

$48.75 discount

UndervaluedFair: $134.84Overvalued
TOLSignificantly Overvalued (-45.7%)

Margin of Safety

-45.7%

Fair Value

$96.03

Current Price

$149.32

$53.29 premium

UndervaluedFair: $96.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LEN4 strengths · Avg: 9.3/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

TOL4 strengths · Avg: 9.0/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

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
4.1%3/10

4.1% 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, Debt/Equity.

Bull Case : TOL

The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, PEG Ratio. PEG of 0.91 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 4.1% 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 1.38 — expect wider price swings.

LEN is growing revenue faster at -8.7% — 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.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?