LGIH vs HD vs LOW vs FND

For growth investors, Floor & Decor Holdings, Inc.

(FND) is the stronger pick with 5. 1% revenue growth year-over-year, versus -22. 6% for LGI Homes, Inc. (LGIH). LGI Homes, Inc. (LGIH) offers the better valuation at 14. 8x trailing P/E (16. 6x 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, LGI Homes, Inc.

(LGIH) is the cheapest at 14. 8x versus Floor & Decor Holdings, Inc. at 26. 8x. On forward P/E, LGI Homes, Inc. is actually cheaper at 16. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Lowe's Companies, Inc. wins at 2. 07x versus Floor & Decor Holdings, Inc. 's 30. 50x.

Over the past 5 years, Lowe's Companies, Inc.

(LOW) delivered a total return of +21. 0%, compared to -74. 8% for LGI Homes, Inc. (LGIH). Over 10 years, the gap is even starker: LOW returned +244. 9% 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), The Home Depot, Inc.

(HD) is the lower-risk stock at 0. 84β versus Floor & Decor Holdings, Inc. 's 1. 80β — meaning FND is approximately 115% more volatile than HD relative to the S&P 500. On balance sheet safety, LGI Homes, Inc. (LGIH) carries a lower debt/equity ratio of 79% versus 151% for Floor & Decor Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Floor & Decor Holdings, Inc.

(FND) is pulling ahead at 5. 1% versus -22. 6% for LGI Homes, Inc. (LGIH). On earnings-per-share growth, the picture is similar: Floor & Decor Holdings, Inc. grew EPS 1. 1% year-over-year, compared to -62. 4% for LGI Homes, Inc.. Over a 3-year CAGR, FND leads at 3. 2% 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.

The Home Depot, Inc.

(HD) is the more profitable company, earning 8. 6% net margin versus 4. 3% for LGI Homes, Inc. — meaning it keeps 8. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HD leads at 12. 7% versus 4. 7% for LGIH. At the gross margin level — before operating expenses — FND leads at 41. 1%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Lowe's Companies, Inc. (LOW) is the more undervalued stock at a PEG of 2. 07x versus Floor & Decor Holdings, Inc. 's 30. 50x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, LGI Homes, Inc. (LGIH) trades at 16. 6x forward P/E versus 26. 1x for Floor & Decor Holdings, Inc. — 9. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LGIH: 91. 8% to $88. 80.

In this comparison, HD (2.

8% yield), LOW (2. 0% yield) pay a dividend. LGIH, FND do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Lowe's Companies, Inc.

(LOW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 86), 2. 0% yield, +244. 9% 10Y return). Floor & Decor Holdings, Inc. (FND) carries a higher beta of 1. 80 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (LOW: +244. 9%, FND: +60. 7%), 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.

In terms of investment character: LGIH is a small-cap deep-value stock; HD is a large-cap quality compounder stock; LOW is a mid-cap quality compounder stock; FND is a small-cap quality compounder stock. HD, LOW pay a dividend while LGIH, FND do 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.