LGIH
LGI Homes, Inc.
Residential Construction
Market Cap$1.08B
5Y Perf.-43.9%
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Stock Comparison
LGIH vs PHM
Revenue, margins, valuation, and 5-year total return — side by side.
PHM
PulteGroup, Inc.
Residential Construction
Market Cap$23.08B
5Y Perf.+253.5%
LGIH vs PHM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | LGIH | PHM |
|---|---|---|
| Industry | Residential Construction | Residential Construction |
| Market Cap | $1.08B | $23.08B |
| Revenue (TTM) | $1.67B | $16.83B |
| Net Income (TTM) | $71M | $2.04B |
| Gross Margin | 20.3% | 26.1% |
| Operating Margin | 4.7% | 16.4% |
| Forward P/E | 16.7x | 12.0x |
| Total Debt | $1.66B | $2.40B |
| Cash & Equiv. | $61M | $2.01B |
LGIH vs PHM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
LGIH
PHM
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| LGI Homes, Inc. (LGIH) | 100 | 56.1 | -43.9% |
| PulteGroup, Inc. (PHM) | 100 | 353.5 | +253.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LGIH vs PHM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PHM leads in 7 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
LGIH
LGI Homes, Inc.
The Specific-Use Pick
In this particular matchup, LGIH is outpaced on most metrics by others in the set.
Best for: consumer cyclical exposure
PHM
PulteGroup, Inc.
The Income Pick
PHM carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 7 yrs, beta 1.01, yield 0.7%
- Rev growth -3.5%, EPS growth -24.3%, 3Y rev CAGR 2.7%
- 5.9% 10Y total return vs LGIH's 66.0%
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PHM | -3.5% revenue growth vs LGIH's -22.6% |
| Value | PHM | Lower P/E (12.0x vs 16.7x) |
| Quality / Margins | PHM | 12.1% margin vs LGIH's 4.2% |
| Stability / Safety | PHM | Beta 1.01 vs LGIH's 1.70, lower leverage |
| Dividends | PHM | 0.7% yield; 7-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | PHM | +20.1% vs LGIH's -12.0% |
| Efficiency (ROA) | PHM | 11.4% ROA vs LGIH's 1.8%, ROIC 17.2% vs 1.7% |
LGIH vs PHM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
LGIH vs PHM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPHMLAGGINGLGIH
LGIHLGI Homes, Inc.
0leads
PHMPulteGroup, Inc.
6leads
6 Total Categories
CATEGORYLEADERvs LGIHMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
PHM5/6
Valuation MetricsMultiples, price ratios, and targets
PHM3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PHM7/8
Total Returns1Y, 3Y, 5Y total returns with dividends
PHM5/6
Risk & VolatilityBeta, volatility, and downside exposure
PHM2/2
Analyst OutlookRatings, price targets, and dividends
PHM1/1
Income & Cash Flow (Last 12 Months)
PHM leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
PHM is the larger business by revenue, generating $16.8B annually — 10.1x LGIH's $1.7B. PHM is the more profitable business, keeping 12.1% of every revenue dollar as net income compared to LGIH's 4.2%. On growth, LGIH holds the edge at -9.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LGIHLGI Homes, Inc. | PHMPulteGroup, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $16.8B |
| EBITDAEarnings before interest/tax | $82M | $2.8B |
| Net IncomeAfter-tax profit | $71M | $2.0B |
| Free Cash FlowCash after capex | -$69M | $1.6B |
| Gross MarginGross profit ÷ Revenue | +20.3% | +26.1% |
| Operating MarginEBIT ÷ Revenue | +4.7% | +16.4% |
| Net MarginNet income ÷ Revenue | +4.2% | +12.1% |
| FCF MarginFCF ÷ Revenue | -4.1% | +9.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.0% | -12.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -47.1% | -30.4% |
PHM leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
PHM leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 10.8x trailing earnings, PHM trades at a 28% valuation discount to LGIH's 15.0x P/E. On an enterprise value basis, PHM's 7.5x EV/EBITDA is more attractive than LGIH's 31.8x.
| Metric | LGIHLGI Homes, Inc. | PHMPulteGroup, Inc. |
|---|---|---|
| Market CapShares × price | $1.1B | $23.1B |
| Enterprise ValueMkt cap + debt − cash | $2.7B | $23.5B |
| Trailing P/EPrice ÷ TTM EPS | 15.00x | 10.80x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.74x | 12.01x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.65x |
| EV / EBITDAEnterprise value multiple | 31.85x | 7.54x |
| Price / SalesMarket cap ÷ Revenue | 0.63x | 1.33x |
| Price / BookPrice ÷ Book value/share | 0.52x | 1.85x |
| Price / FCFMarket cap ÷ FCF | — | 13.20x |
PHM leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
PHM leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
PHM delivers a 15.9% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $3 for LGIH. PHM carries lower financial leverage with a 0.19x debt-to-equity ratio, signaling a more conservative balance sheet compared to LGIH's 0.79x. On the Piotroski fundamental quality scale (0–9), PHM scores 5/9 vs LGIH's 3/9, reflecting solid financial health.
| Metric | LGIHLGI Homes, Inc. | PHMPulteGroup, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +3.4% | +15.9% |
| ROA (TTM)Return on assets | +1.8% | +11.4% |
| ROICReturn on invested capital | +1.7% | +17.2% |
| ROCEReturn on capital employed | +2.1% | +20.0% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 5 |
| Debt / EquityFinancial leverage | 0.79x | 0.19x |
| Net DebtTotal debt minus cash | $1.6B | $394M |
| Cash & Equiv.Liquid assets | $61M | $2.0B |
| Total DebtShort + long-term debt | $1.7B | $2.4B |
| Interest CoverageEBIT ÷ Interest expense | — | 5590.17x |
PHM leads this category, winning 7 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
PHM leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PHM five years ago would be worth $20,429 today (with dividends reinvested), compared to $2,670 for LGIH. Over the past 12 months, PHM leads with a +20.1% total return vs LGIH's -12.0%. The 3-year compound annual growth rate (CAGR) favors PHM at 21.8% vs LGIH's -26.2% — a key indicator of consistent wealth creation.
| Metric | LGIHLGI Homes, Inc. | PHMPulteGroup, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +12.2% | +1.1% |
| 1-Year ReturnPast 12 months | -12.0% | +20.1% |
| 3-Year ReturnCumulative with dividends | -59.7% | +80.9% |
| 5-Year ReturnCumulative with dividends | -73.3% | +104.3% |
| 10-Year ReturnCumulative with dividends | +66.0% | +590.7% |
| CAGR (3Y)Annualised 3-year return | -26.2% | +21.8% |
PHM leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
PHM leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
PHM is the less volatile stock with a 1.01 beta — it tends to amplify market swings less than LGIH's 1.70 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PHM currently trades 83.2% from its 52-week high vs LGIH's 67.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LGIHLGI Homes, Inc. | PHMPulteGroup, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.70x | 1.01x |
| 52-Week HighHighest price in past year | $69.50 | $144.27 |
| 52-Week LowLowest price in past year | $33.59 | $95.20 |
| % of 52W HighCurrent price vs 52-week peak | +67.3% | +83.2% |
| RSI (14)Momentum oscillator 0–100 | 53.9 | 42.9 |
| Avg Volume (50D)Average daily shares traded | 493K | 1.8M |
PHM leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
PHM leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates LGIH as "Buy" and PHM as "Hold". Consensus price targets imply 89.7% upside for LGIH (target: $89) vs 17.6% for PHM (target: $141). PHM is the only dividend payer here at 0.74% yield — a key consideration for income-focused portfolios.
| Metric | LGIHLGI Homes, Inc. | PHMPulteGroup, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $88.80 | $141.22 |
| # AnalystsCovering analysts | 13 | 44 |
| Dividend YieldAnnual dividend ÷ price | — | +0.7% |
| Dividend StreakConsecutive years of raises | 0 | 7 |
| Dividend / ShareAnnual DPS | — | $0.89 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +5.3% |
PHM leads this category, winning 1 of 1 comparable metric.
Key Takeaway
PHM leads in 6 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics.
Best OverallPulteGroup, Inc. (PHM)Leads 6 of 6 categories
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LGIH vs PHM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LGIH or PHM a better buy right now?
For growth investors, PulteGroup, Inc.
(PHM) is the stronger pick with -3. 5% revenue growth year-over-year, versus -22. 6% for LGI Homes, Inc. (LGIH). PulteGroup, Inc. (PHM) offers the better valuation at 10. 8x trailing P/E (12. 0x 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.
02Which has the better valuation — LGIH or PHM?
On trailing P/E, PulteGroup, Inc.
(PHM) is the cheapest at 10. 8x versus LGI Homes, Inc. at 15. 0x. On forward P/E, PulteGroup, Inc. is actually cheaper at 12. 0x.
03Which is the better long-term investment — LGIH or PHM?
Over the past 5 years, PulteGroup, Inc.
(PHM) delivered a total return of +104. 3%, compared to -73. 3% for LGI Homes, Inc. (LGIH). Over 10 years, the gap is even starker: PHM returned +590. 7% versus LGIH's +66. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — LGIH or PHM?
By beta (market sensitivity over 5 years), PulteGroup, Inc.
(PHM) is the lower-risk stock at 1. 01β versus LGI Homes, Inc. 's 1. 70β — meaning LGIH is approximately 68% more volatile than PHM relative to the S&P 500. On balance sheet safety, PulteGroup, Inc. (PHM) carries a lower debt/equity ratio of 19% versus 79% for LGI Homes, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — LGIH or PHM?
By revenue growth (latest reported year), PulteGroup, Inc.
(PHM) is pulling ahead at -3. 5% versus -22. 6% for LGI Homes, Inc. (LGIH). On earnings-per-share growth, the picture is similar: PulteGroup, Inc. grew EPS -24. 3% year-over-year, compared to -62. 4% for LGI Homes, Inc.. Over a 3-year CAGR, PHM leads at 2. 7% 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.
06Which has better profit margins — LGIH or PHM?
PulteGroup, Inc.
(PHM) is the more profitable company, earning 12. 8% net margin versus 4. 3% for LGI Homes, Inc. — meaning it keeps 12. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PHM leads at 17. 3% versus 4. 7% for LGIH. At the gross margin level — before operating expenses — PHM leads at 26. 4%, 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.
07Is LGIH or PHM more undervalued right now?
On forward earnings alone, PulteGroup, Inc.
(PHM) trades at 12. 0x forward P/E versus 16. 7x for LGI Homes, Inc. — 4. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LGIH: 89. 7% to $88. 80.
08Which pays a better dividend — LGIH or PHM?
In this comparison, PHM (0.
7% yield) pays a dividend. LGIH does not pay a meaningful dividend and should not be held primarily for income.
09Is LGIH or PHM better for a retirement portfolio?
For long-horizon retirement investors, PulteGroup, Inc.
(PHM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 01), 0. 7% yield, +590. 7% 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 (PHM: +590. 7%, LGIH: +66. 0%), 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.
10What are the main differences between LGIH and PHM?
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.
PHM pays a dividend while LGIH does not, making them suitable for different income and tax situations. 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.
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Revenue Growth>
%
(LGIH: -9.0% · PHM: -12.4%)Net Margin>
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(LGIH: 4.2% · PHM: 12.1%)P/E Ratio<
x
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