LGI Homes (LGIH)vsPulteGroup Inc (PHM)
LGIH
LGI Homes
$39.34
+5.33%
CONSUMER CYCLICAL · Cap: $792.08M
PHM
PulteGroup Inc
$118.18
+0.08%
CONSUMER CYCLICAL · Cap: $22.71B
Smart Verdict
WallStSmart Research — data-driven comparison
PulteGroup Inc generates 915% more annual revenue ($17.31B vs $1.71B). PHM leads profitability with a 12.8% profit margin vs 4.3%. LGIH appears more attractively valued with a PEG of 0.69. PHM earns a higher WallStSmart Score of 61/100 (C+).
LGIH
Buy50
out of 100
Grade: C-
PHM
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-187.1%
Fair Value
$21.22
Current Price
$39.34
$18.12 premium
Margin of Safety
-84.2%
Fair Value
$75.62
Current Price
$118.18
$42.56 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of 3.5% — below average capital efficiency
4.3% margin — thin
Operating margin of 4.0%
Weak financial health signals
Revenue declined 6.3%
Earnings declined 42.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : LGIH
The strongest argument for LGIH centers on P/E Ratio, Price/Book, Altman Z-Score. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bull Case : PHM
The strongest argument for PHM centers on P/E Ratio, Price/Book. PEG of 1.02 suggests the stock is reasonably priced for its growth.
Bear Case : LGIH
The primary concerns for LGIH are Market Cap, Return on Equity, Profit Margin. Thin 4.3% margins leave little buffer for downturns.
Bear Case : PHM
The primary concerns for PHM are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
LGIH profiles as a value stock while PHM is a declining play — different risk/reward profiles.
LGIH carries more volatility with a beta of 1.79 — expect wider price swings.
PHM is growing revenue faster at -6.3% — sustainability is the question.
PHM generates stronger free cash flow (740M), providing more financial flexibility.
Bottom Line
PHM scores higher overall (61/100 vs 50/100). 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.
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 →PulteGroup Inc
CONSUMER CYCLICAL · RESIDENTIAL CONSTRUCTION · USA
PulteGroup, Inc. (previously known as Pulte Homes) is a home construction company based in Atlanta, Georgia, United States.
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