LGI Homes (LGIH)vsPulteGroup Inc (PHM)
LGIH
LGI Homes
$47.15
-3.58%
CONSUMER CYCLICAL · Cap: $1.03B
PHM
PulteGroup Inc
$132.48
-1.97%
CONSUMER CYCLICAL · Cap: $23.69B
Smart Verdict
WallStSmart Research — data-driven comparison
PulteGroup Inc generates 849% more annual revenue ($15.98B vs $1.68B). PHM leads profitability with a 11.2% profit margin vs 3.9%. LGIH appears more attractively valued with a PEG of 0.69. PHM earns a higher WallStSmart Score of 59/100 (C).
LGIH
Buy55
out of 100
Grade: C
PHM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+11.8%
Fair Value
$69.04
Current Price
$47.15
$21.89 discount
Intrinsic value data unavailable for PHM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of 3.1% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Revenue declined 9.8%
Earnings declined 14.5%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : PHM
The strongest argument for PHM centers on Altman Z-Score, Debt/Equity, P/E Ratio. PEG of 1.29 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 3.9% margins leave little buffer for downturns.
Bear Case : PHM
The primary concerns for PHM are Revenue Growth, EPS Growth, Free Cash Flow.
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 1.86 — expect wider price swings.
LGIH is growing revenue faster at 5.7% — sustainability is the question.
LGIH generates stronger free cash flow (114M), providing more financial flexibility.
Bottom Line
PHM scores higher overall (59/100 vs 55/100). 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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