LGIH vs TMHC

For growth investors, Taylor Morrison Home Corporation (TMHC) is the stronger pick with -0.

6% revenue growth year-over-year, versus -22. 6% for LGI Homes, Inc. (LGIH). Taylor Morrison Home Corporation (TMHC) offers the better valuation at 7. 7x trailing P/E (11. 2x 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, Taylor Morrison Home Corporation (TMHC) is the cheapest at 7.

7x versus LGI Homes, Inc. at 14. 8x. On forward P/E, Taylor Morrison Home Corporation is actually cheaper at 11. 2x.

Over the past 5 years, Taylor Morrison Home Corporation (TMHC) delivered a total return of +85.

7%, compared to -74. 8% for LGI Homes, Inc. (LGIH). Over 10 years, the gap is even starker: TMHC returned +321. 2% 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), Taylor Morrison Home Corporation (TMHC) is the lower-risk stock at 0.

92β versus LGI Homes, Inc. 's 1. 70β — meaning LGIH is approximately 84% more volatile than TMHC relative to the S&P 500. On balance sheet safety, Taylor Morrison Home Corporation (TMHC) carries a lower debt/equity ratio of 37% versus 79% for LGI Homes, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Taylor Morrison Home Corporation (TMHC) is pulling ahead at -0.

6% versus -22. 6% for LGI Homes, Inc. (LGIH). On earnings-per-share growth, the picture is similar: Taylor Morrison Home Corporation grew EPS -6. 0% year-over-year, compared to -62. 4% for LGI Homes, Inc.. Over a 3-year CAGR, TMHC leads at -0. 4% 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.

Taylor Morrison Home Corporation (TMHC) is the more profitable company, earning 9.

6% net margin versus 4. 3% for LGI Homes, Inc. — meaning it keeps 9. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TMHC leads at 14. 0% versus 4. 7% for LGIH. At the gross margin level — before operating expenses — TMHC leads at 23. 0%, 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, Taylor Morrison Home Corporation (TMHC) trades at 11.

2x forward P/E versus 16. 6x for LGI Homes, Inc. — 5. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LGIH: 91. 8% to $88. 80.

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, Taylor Morrison Home Corporation (TMHC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

92), +321. 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 (TMHC: +321. 2%, 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.