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MHO vs LGIH
Revenue, margins, valuation, and 5-year total return — side by side.
Residential Construction
MHO vs LGIH — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Residential Construction | Residential Construction |
| Market Cap | $3.35B | $1.07B |
| Revenue (TTM) | $4.36B | $1.67B |
| Net Income (TTM) | $360M | $71M |
| Gross Margin | 22.2% | 20.3% |
| Operating Margin | 10.4% | 4.7% |
| Forward P/E | 9.9x | 16.6x |
| Total Debt | $1.09B | $1.66B |
| Cash & Equiv. | $689M | $61M |
MHO vs LGIH — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| M/I Homes, Inc. (MHO) | 100 | 388.3 | +288.3% |
| LGI Homes, Inc. (LGIH) | 100 | 55.5 | -44.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MHO vs LGIH
Each card shows where this stock fits in a portfolio — not just who wins on paper.
MHO carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 0 yrs, beta 1.07
- Rev growth -1.9%, EPS growth -25.2%, 3Y rev CAGR 2.3%
- 6.0% 10Y total return vs LGIH's 56.4%
In this particular matchup, LGIH is outpaced on most metrics by others in the set.
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | -1.9% revenue growth vs LGIH's -22.6% | |
| Value | Lower P/E (9.9x vs 16.6x) | |
| Quality / Margins | 8.2% margin vs LGIH's 4.2% | |
| Stability / Safety | Beta 1.07 vs LGIH's 1.70, lower leverage | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | +19.3% vs LGIH's -14.5% | |
| Efficiency (ROA) | 7.5% ROA vs LGIH's 1.8%, ROIC 11.3% vs 1.7% |
MHO vs LGIH — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
MHO vs LGIH — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
MHO leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MHO is the larger business by revenue, generating $4.4B annually — 2.6x LGIH's $1.7B. Profitability is closely matched — net margins range from 8.2% (MHO) to 4.2% (LGIH). On growth, MHO holds the edge at -5.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $4.4B | $1.7B |
| EBITDAEarnings before interest/tax | $471M | $82M |
| Net IncomeAfter-tax profit | $360M | $71M |
| Free Cash FlowCash after capex | $199M | -$69M |
| Gross MarginGross profit ÷ Revenue | +22.2% | +20.3% |
| Operating MarginEBIT ÷ Revenue | +10.4% | +4.7% |
| Net MarginNet income ÷ Revenue | +8.2% | +4.2% |
| FCF MarginFCF ÷ Revenue | +4.6% | -4.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -5.4% | -9.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -35.9% | -47.1% |
Valuation Metrics
MHO leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 8.8x trailing earnings, MHO trades at a 41% valuation discount to LGIH's 14.8x P/E. On an enterprise value basis, MHO's 7.1x EV/EBITDA is more attractive than LGIH's 31.7x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $3.4B | $1.1B |
| Enterprise ValueMkt cap + debt − cash | $3.7B | $2.7B |
| Trailing P/EPrice ÷ TTM EPS | 8.82x | 14.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.88x | 16.56x |
| PEG RatioP/E ÷ EPS growth rate | 0.71x | — |
| EV / EBITDAEnterprise value multiple | 7.12x | 31.71x |
| Price / SalesMarket cap ÷ Revenue | 0.76x | 0.63x |
| Price / BookPrice ÷ Book value/share | 1.12x | 0.51x |
| Price / FCFMarket cap ÷ FCF | 27.75x | — |
Profitability & Efficiency
MHO leads this category, winning 8 of 8 comparable metrics.
Profitability & Efficiency
MHO delivers a 11.4% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $3 for LGIH. MHO carries lower financial leverage with a 0.34x debt-to-equity ratio, signaling a more conservative balance sheet compared to LGIH's 0.79x. On the Piotroski fundamental quality scale (0–9), MHO scores 5/9 vs LGIH's 3/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +11.4% | +3.4% |
| ROA (TTM)Return on assets | +7.5% | +1.8% |
| ROICReturn on invested capital | +11.3% | +1.7% |
| ROCEReturn on capital employed | +11.4% | +2.1% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 3 |
| Debt / EquityFinancial leverage | 0.34x | 0.79x |
| Net DebtTotal debt minus cash | $397M | $1.6B |
| Cash & Equiv.Liquid assets | $689M | $61M |
| Total DebtShort + long-term debt | $1.1B | $1.7B |
| Interest CoverageEBIT ÷ Interest expense | 6.68x | — |
Total Returns (Dividends Reinvested)
MHO leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MHO five years ago would be worth $17,669 today (with dividends reinvested), compared to $2,525 for LGIH. Over the past 12 months, MHO leads with a +19.3% total return vs LGIH's -14.5%. The 3-year compound annual growth rate (CAGR) favors MHO at 24.5% vs LGIH's -26.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +1.7% | +11.0% |
| 1-Year ReturnPast 12 months | +19.3% | -14.5% |
| 3-Year ReturnCumulative with dividends | +93.1% | -60.2% |
| 5-Year ReturnCumulative with dividends | +76.7% | -74.8% |
| 10-Year ReturnCumulative with dividends | +599.0% | +56.4% |
| CAGR (3Y)Annualised 3-year return | +24.5% | -26.4% |
Risk & Volatility
MHO leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
MHO is the less volatile stock with a 1.07 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. MHO currently trades 81.8% from its 52-week high vs LGIH's 66.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.07x | 1.70x |
| 52-Week HighHighest price in past year | $158.92 | $69.50 |
| 52-Week LowLowest price in past year | $103.52 | $33.59 |
| % of 52W HighCurrent price vs 52-week peak | +81.8% | +66.6% |
| RSI (14)Momentum oscillator 0–100 | 54.8 | 56.3 |
| Avg Volume (50D)Average daily shares traded | 226K | 490K |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates MHO as "Hold" and LGIH as "Buy". Consensus price targets imply 91.8% upside for LGIH (target: $89) vs 26.9% for MHO (target: $165).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $165.00 | $88.80 |
| # AnalystsCovering analysts | 10 | 13 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +6.0% | 0.0% |
MHO leads in 5 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics.
MHO vs LGIH: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is MHO or LGIH a better buy right now?
For growth investors, M/I Homes, Inc.
(MHO) is the stronger pick with -1. 9% revenue growth year-over-year, versus -22. 6% for LGI Homes, Inc. (LGIH). M/I Homes, Inc. (MHO) offers the better valuation at 8. 8x trailing P/E (9. 9x 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 — MHO or LGIH?
On trailing P/E, M/I Homes, Inc.
(MHO) is the cheapest at 8. 8x versus LGI Homes, Inc. at 14. 8x. On forward P/E, M/I Homes, Inc. is actually cheaper at 9. 9x.
03Which is the better long-term investment — MHO or LGIH?
Over the past 5 years, M/I Homes, Inc.
(MHO) delivered a total return of +76. 7%, compared to -74. 8% for LGI Homes, Inc. (LGIH). Over 10 years, the gap is even starker: MHO returned +599. 0% 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.
04Which is safer — MHO or LGIH?
By beta (market sensitivity over 5 years), M/I Homes, Inc.
(MHO) is the lower-risk stock at 1. 07β versus LGI Homes, Inc. 's 1. 70β — meaning LGIH is approximately 58% more volatile than MHO relative to the S&P 500. On balance sheet safety, M/I Homes, Inc. (MHO) carries a lower debt/equity ratio of 34% versus 79% for LGI Homes, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — MHO or LGIH?
By revenue growth (latest reported year), M/I Homes, Inc.
(MHO) is pulling ahead at -1. 9% versus -22. 6% for LGI Homes, Inc. (LGIH). On earnings-per-share growth, the picture is similar: M/I Homes, Inc. grew EPS -25. 2% year-over-year, compared to -62. 4% for LGI Homes, Inc.. Over a 3-year CAGR, MHO leads at 2. 3% 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 — MHO or LGIH?
M/I Homes, Inc.
(MHO) is the more profitable company, earning 9. 1% net margin versus 4. 3% for LGI Homes, Inc. — meaning it keeps 9. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MHO leads at 11. 5% versus 4. 7% for LGIH. At the gross margin level — before operating expenses — MHO 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.
07Is MHO or LGIH more undervalued right now?
On forward earnings alone, M/I Homes, Inc.
(MHO) trades at 9. 9x forward P/E versus 16. 6x for LGI Homes, Inc. — 6. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LGIH: 91. 8% to $88. 80.
08Which pays a better dividend — MHO or LGIH?
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.
09Is MHO or LGIH better for a retirement portfolio?
For long-horizon retirement investors, M/I Homes, Inc.
(MHO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 07), +599. 0% 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 (MHO: +599. 0%, 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.
10What are the main differences between MHO and LGIH?
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.
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