WallStSmart

LGI Homes (LGIH)vsToll Brothers Inc (TOL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Toll Brothers Inc generates 539% more annual revenue ($10.76B vs $1.68B). TOL leads profitability with a 11.1% profit margin vs 3.9%. LGIH appears more attractively valued with a PEG of 0.69. TOL earns a higher WallStSmart Score of 59/100 (C).

LGIH

Buy

55

out of 100

Grade: C

Growth: 3.3Profit: 4.5Value: 7.3Quality: 7.5
Piotroski: 3/9Altman Z: 3.07

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

LGIHUndervalued (+11.8%)

Margin of Safety

+11.8%

Fair Value

$69.04

Current Price

$47.15

$21.89 discount

UndervaluedFair: $69.04Overvalued
TOLSignificantly Overvalued (-61.8%)

Margin of Safety

-61.8%

Fair Value

$96.15

Current Price

$152.55

$56.40 premium

UndervaluedFair: $96.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LGIH4 strengths · Avg: 9.0/10
Price/BookValuation
0.5x10/10

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
15.6x8/10

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
1.7x8/10

Reasonable price relative to book value

Areas to Watch

LGIH4 concerns · Avg: 3.0/10
Market CapQuality
$1.03B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.1%3/10

ROE of 3.1% — below average capital efficiency

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : 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, PEG Ratio. PEG of 0.91 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 : 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 1.86 — expect wider price swings.

LGIH is growing revenue faster at 5.7% — sustainability is the question.

TOL generates stronger free cash flow (220M), providing more financial flexibility.

Bottom Line

TOL scores higher overall (59/100 vs 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.

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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.

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