Residential Construction
Compare Stocks
2 / 10Stock Comparison
LGIH vs LEN
Revenue, margins, valuation, and 5-year total return — side by side.
Residential Construction
LGIH vs LEN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Residential Construction | Residential Construction |
| Market Cap | $1.08B | $19.54B |
| Revenue (TTM) | $1.67B | $34.13B |
| Net Income (TTM) | $71M | $2.08B |
| Gross Margin | 20.3% | 17.6% |
| Operating Margin | 4.7% | 7.7% |
| Forward P/E | 16.7x | 14.7x |
| Total Debt | $1.66B | $6.32B |
| Cash & Equiv. | $61M | $3.80B |
LGIH vs LEN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| LGI Homes, Inc. (LGIH) | 100 | 56.1 | -43.9% |
| Lennar Corporation (LEN) | 100 | 149.8 | +49.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LGIH vs LEN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
LGIH is the clearest fit if your priority is momentum.
- -12.0% vs LEN's -12.9%
LEN carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 12 yrs, beta 0.92, yield 2.2%
- Rev growth -3.6%, EPS growth -44.2%, 3Y rev CAGR 0.5%
- 129.2% 10Y total return vs LGIH's 66.0%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | -3.6% revenue growth vs LGIH's -22.6% | |
| Value | Lower P/E (14.7x vs 16.7x) | |
| Quality / Margins | 6.1% margin vs LGIH's 4.2% | |
| Stability / Safety | Beta 0.92 vs LGIH's 1.70, lower leverage | |
| Dividends | 2.2% yield; 12-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | -12.0% vs LEN's -12.9% | |
| Efficiency (ROA) | 6.0% ROA vs LGIH's 1.8%, ROIC 7.9% vs 1.7% |
LGIH vs LEN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
LGIH vs LEN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
LEN leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LEN is the larger business by revenue, generating $34.1B annually — 20.4x LGIH's $1.7B. Profitability is closely matched — net margins range from 6.1% (LEN) to 4.2% (LGIH).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $34.1B |
| EBITDAEarnings before interest/tax | $82M | $2.8B |
| Net IncomeAfter-tax profit | $71M | $2.1B |
| Free Cash FlowCash after capex | -$69M | $28M |
| Gross MarginGross profit ÷ Revenue | +20.3% | +17.6% |
| Operating MarginEBIT ÷ Revenue | +4.7% | +7.7% |
| Net MarginNet income ÷ Revenue | +4.2% | +6.1% |
| FCF MarginFCF ÷ Revenue | -4.1% | +0.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.0% | -6.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -47.1% | -52.5% |
Valuation Metrics
LEN leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 11.3x trailing earnings, LEN trades at a 24% valuation discount to LGIH's 15.0x P/E. On an enterprise value basis, LEN's 7.6x EV/EBITDA is more attractive than LGIH's 31.8x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $1.1B | $19.5B |
| Enterprise ValueMkt cap + debt − cash | $2.7B | $22.0B |
| Trailing P/EPrice ÷ TTM EPS | 15.00x | 11.35x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.74x | 14.69x |
| PEG RatioP/E ÷ EPS growth rate | — | 44.65x |
| EV / EBITDAEnterprise value multiple | 31.85x | 7.64x |
| Price / SalesMarket cap ÷ Revenue | 0.63x | 0.57x |
| Price / BookPrice ÷ Book value/share | 0.52x | 1.05x |
| Price / FCFMarket cap ÷ FCF | — | 693.18x |
Profitability & Efficiency
LEN leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
LEN delivers a 9.2% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $3 for LGIH. LEN carries lower financial leverage with a 0.29x debt-to-equity ratio, signaling a more conservative balance sheet compared to LGIH's 0.79x. On the Piotroski fundamental quality scale (0–9), LEN scores 4/9 vs LGIH's 3/9, reflecting mixed financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +3.4% | +9.2% |
| ROA (TTM)Return on assets | +1.8% | +6.0% |
| ROICReturn on invested capital | +1.7% | +7.9% |
| ROCEReturn on capital employed | +2.1% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 4 |
| Debt / EquityFinancial leverage | 0.79x | 0.29x |
| Net DebtTotal debt minus cash | $1.6B | $2.5B |
| Cash & Equiv.Liquid assets | $61M | $3.8B |
| Total DebtShort + long-term debt | $1.7B | $6.3B |
| Interest CoverageEBIT ÷ Interest expense | — | 198.24x |
Total Returns (Dividends Reinvested)
LEN leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LEN five years ago would be worth $9,353 today (with dividends reinvested), compared to $2,670 for LGIH. Over the past 12 months, LGIH leads with a -12.0% total return vs LEN's -12.9%. The 3-year compound annual growth rate (CAGR) favors LEN at -5.7% vs LGIH's -26.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +12.2% | -12.2% |
| 1-Year ReturnPast 12 months | -12.0% | -12.9% |
| 3-Year ReturnCumulative with dividends | -59.7% | -16.1% |
| 5-Year ReturnCumulative with dividends | -73.3% | -6.5% |
| 10-Year ReturnCumulative with dividends | +66.0% | +129.2% |
| CAGR (3Y)Annualised 3-year return | -26.2% | -5.7% |
Risk & Volatility
Evenly matched — LGIH and LEN each lead in 1 of 2 comparable metrics.
Risk & Volatility
LEN is the less volatile stock with a 0.92 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. LGIH currently trades 67.3% from its 52-week high vs LEN's 62.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.70x | 0.92x |
| 52-Week HighHighest price in past year | $69.50 | $144.24 |
| 52-Week LowLowest price in past year | $33.59 | $83.03 |
| % of 52W HighCurrent price vs 52-week peak | +67.3% | +62.8% |
| RSI (14)Momentum oscillator 0–100 | 53.9 | 38.2 |
| Avg Volume (50D)Average daily shares traded | 493K | 2.9M |
Analyst Outlook
LEN leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates LGIH as "Buy" and LEN as "Buy". Consensus price targets imply 89.7% upside for LGIH (target: $89) vs 12.8% for LEN (target: $102). LEN is the only dividend payer here at 2.23% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $88.80 | $102.14 |
| # AnalystsCovering analysts | 13 | 50 |
| Dividend YieldAnnual dividend ÷ price | — | +2.2% |
| Dividend StreakConsecutive years of raises | 0 | 12 |
| Dividend / ShareAnnual DPS | — | $2.02 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +9.3% |
LEN leads in 5 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics. 1 category is tied.
LGIH vs LEN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LGIH or LEN a better buy right now?
For growth investors, Lennar Corporation (LEN) is the stronger pick with -3.
6% revenue growth year-over-year, versus -22. 6% for LGI Homes, Inc. (LGIH). Lennar Corporation (LEN) offers the better valuation at 11. 3x trailing P/E (14. 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.
02Which has the better valuation — LGIH or LEN?
On trailing P/E, Lennar Corporation (LEN) is the cheapest at 11.
3x versus LGI Homes, Inc. at 15. 0x. On forward P/E, Lennar Corporation is actually cheaper at 14. 7x.
03Which is the better long-term investment — LGIH or LEN?
Over the past 5 years, Lennar Corporation (LEN) delivered a total return of -6.
5%, compared to -73. 3% for LGI Homes, Inc. (LGIH). Over 10 years, the gap is even starker: LEN returned +129. 2% 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 LEN?
By beta (market sensitivity over 5 years), Lennar Corporation (LEN) is the lower-risk stock at 0.
92β versus LGI Homes, Inc. 's 1. 70β — meaning LGIH is approximately 83% more volatile than LEN relative to the S&P 500. On balance sheet safety, Lennar Corporation (LEN) carries a lower debt/equity ratio of 29% versus 79% for LGI Homes, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — LGIH or LEN?
By revenue growth (latest reported year), Lennar Corporation (LEN) is pulling ahead at -3.
6% versus -22. 6% for LGI Homes, Inc. (LGIH). On earnings-per-share growth, the picture is similar: Lennar Corporation grew EPS -44. 2% year-over-year, compared to -62. 4% for LGI Homes, Inc.. Over a 3-year CAGR, LEN leads at 0. 5% 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 LEN?
Lennar Corporation (LEN) is the more profitable company, earning 6.
0% net margin versus 4. 3% for LGI Homes, Inc. — meaning it keeps 6. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LEN leads at 8. 0% versus 4. 7% for LGIH. 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.
07Is LGIH or LEN more undervalued right now?
On forward earnings alone, Lennar Corporation (LEN) trades at 14.
7x forward P/E versus 16. 7x for LGI Homes, Inc. — 2. 1x 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 LEN?
In this comparison, LEN (2.
2% yield) pays a dividend. LGIH does not pay a meaningful dividend and should not be held primarily for income.
09Is LGIH or LEN better for a retirement portfolio?
For long-horizon retirement investors, Lennar Corporation (LEN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
92), 2. 2% yield, +129. 2% 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 (LEN: +129. 2%, 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 LEN?
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.
LEN 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.