WallStSmart

LGI Homes (LGIH)vsPulteGroup Inc (PHM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PulteGroup Inc generates 905% more annual revenue ($16.83B vs $1.67B). PHM leads profitability with a 12.1% profit margin vs 4.2%. LGIH appears more attractively valued with a PEG of 0.69. PHM earns a higher WallStSmart Score of 59/100 (C).

LGIH

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 3.5Value: 7.3Quality: 7.5
Piotroski: 3/9Altman Z: 3.07

PHM

Buy

59

out of 100

Grade: C

Growth: 2.7Profit: 7.0Value: 7.0Quality: 9.0
Piotroski: 4/9Altman Z: 4.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LGIHUndervalued (+12.9%)

Margin of Safety

+12.9%

Fair Value

$69.93

Current Price

$55.15

$14.78 discount

UndervaluedFair: $69.93Overvalued

Intrinsic value data unavailable for PHM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LGIH4 strengths · Avg: 9.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.0710/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.698/10

Growing faster than its price suggests

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

PHM4 strengths · Avg: 9.3/10
P/E RatioValuation
11.9x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
4.6110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

LGIH4 concerns · Avg: 3.0/10
Market CapQuality
$1.26B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.4%3/10

ROE of 3.4% — below average capital efficiency

Profit MarginProfitability
4.2%3/10

4.2% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PHM2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-12.4%2/10

Revenue declined 12.4%

EPS GrowthGrowth
-30.4%2/10

Earnings declined 30.4%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PHM

The strongest argument for PHM centers on P/E Ratio, Altman Z-Score, Debt/Equity. PEG of 1.12 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 4.2% margins leave little buffer for downturns.

Bear Case : PHM

The primary concerns for PHM are 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 1.89 — expect wider price swings.

LGIH is growing revenue faster at -9.0% — sustainability is the question.

PHM generates stronger free cash flow (134,355), providing more financial flexibility.

Bottom Line

PHM scores higher overall (59/100 vs 49/100). 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.

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.

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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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