LGI Homes (LGIH)vsToll Brothers Inc (TOL)
LGIH
LGI Homes
$55.15
-0.51%
CONSUMER CYCLICAL · Cap: $1.26B
TOL
Toll Brothers Inc
$151.92
+6.67%
CONSUMER CYCLICAL · Cap: $13.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Toll Brothers Inc generates 560% more annual revenue ($11.05B vs $1.67B). TOL leads profitability with a 11.7% profit margin vs 4.2%. LGIH appears more attractively valued with a PEG of 0.69. TOL earns a higher WallStSmart Score of 61/100 (C+).
LGIH
Hold49
out of 100
Grade: D+
TOL
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.9%
Fair Value
$69.93
Current Price
$55.15
$14.78 discount
Margin of Safety
-62.6%
Fair Value
$95.76
Current Price
$151.92
$56.16 premium
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
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of 3.4% — below average capital efficiency
4.2% margin — thin
Weak financial health signals
Weak financial health signals
Revenue declined 7.6%
Earnings declined 22.3%
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 : TOL
The strongest argument for TOL centers on P/E Ratio, Altman Z-Score, Price/Book. PEG of 1.09 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 : TOL
The primary concerns for TOL are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
LGIH profiles as a value stock while TOL is a declining play — different risk/reward profiles.
LGIH carries more volatility with a beta of 1.89 — expect wider price swings.
TOL is growing revenue faster at -7.6% — sustainability is the question.
TOL generates stronger free cash flow (110M), providing more financial flexibility.
Bottom Line
TOL scores higher overall (61/100 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.
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 →Compare with Other RESIDENTIAL CONSTRUCTION Stocks
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