BZH vs LGIH

For growth investors, Beazer Homes USA, Inc.

(BZH) is the stronger pick with 1. 8% revenue growth year-over-year, versus -22. 6% for LGI Homes, Inc. (LGIH). Beazer Homes USA, Inc. (BZH) offers the better valuation at 12. 3x trailing P/E (58. 7x forward), making it the more compelling value choice. Analysts rate LGI Homes, Inc. (LGIH) a "Buy" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Beazer Homes USA, Inc.

(BZH) is the cheapest at 12. 3x versus LGI Homes, Inc. at 14. 8x. On forward P/E, LGI Homes, Inc. is actually cheaper at 16. 6x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Beazer Homes USA, Inc.

(BZH) delivered a total return of -26. 4%, compared to -74. 8% for LGI Homes, Inc. (LGIH). Over 10 years, the gap is even starker: BZH returned +146. 4% versus LGIH's +56. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Beazer Homes USA, Inc.

(BZH) is the lower-risk stock at 1. 67β versus LGI Homes, Inc. 's 1. 70β — meaning LGIH is approximately 2% more volatile than BZH relative to the S&P 500. On balance sheet safety, LGI Homes, Inc. (LGIH) carries a lower debt/equity ratio of 79% versus 85% for Beazer Homes USA, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Beazer Homes USA, Inc.

(BZH) is pulling ahead at 1. 8% versus -22. 6% for LGI Homes, Inc. (LGIH). On earnings-per-share growth, the picture is similar: LGI Homes, Inc. grew EPS -62. 4% year-over-year, compared to -66. 4% for Beazer Homes USA, Inc.. Over a 3-year CAGR, BZH leads at 0. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

LGI Homes, Inc.

(LGIH) is the more profitable company, earning 4. 3% net margin versus 1. 9% for Beazer Homes USA, Inc. — meaning it keeps 4. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LGIH leads at 4. 7% versus 1. 5% for BZH. At the gross margin level — before operating expenses — LGIH leads at 20. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, LGI Homes, Inc.

(LGIH) trades at 16. 6x forward P/E versus 58. 7x for Beazer Homes USA, Inc. — 42. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BZH: 120. 1% to $41. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Beazer Homes USA, Inc.

(BZH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+146. 4% 10Y return). LGI Homes, Inc. (LGIH) carries a higher beta of 1. 70 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (BZH: +146. 4%, LGIH: +56. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.