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HD vs LGIH

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
LGIH
LGI Homes, Inc.
BEARISH
Price
$39.75
Market Cap
$919.5M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
LGIH
12.74
Forward P/E
HD
20.17
LGIH
12.7
P/B Ratio
HD
25.57
LGIH
0.44
P/S Ratio
HD
1.99
LGIH
0.54
EV/EBITDA
HD
15.68
LGIH
28.78

Profitability

Gross Margin
HD
33.32%
LGIH
20.93%
Operating Margin
HD
10.08%
LGIH
4.04%
Profit Margin
HD
8.6%
LGIH
4.25%
ROE
HD
145.54%
LGIH
3.51%
ROA
HD
12.98%
LGIH
1.35%

Growth

Revenue Growth
HD
-3.8%
LGIH
-15.0%
Earnings Growth
HD
-14.2%
LGIH
-65.1%

Financial Health

Debt/Equity
HD
5.14
LGIH
0.79
Current Ratio
HD
1.06
LGIH
51.0
Quick Ratio
HD
0.21
LGIH
1.32

Dividends

Dividend Yield
HD
2.83%
LGIH
--
Payout Ratio
HD
64.65%
LGIH
0.0%

AI Verdict

HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14
LGIH BEARISH

LGIH exhibits severe fundamental deterioration, highlighted by a weak Piotroski F-Score of 2/9 and a catastrophic YoY earnings decline of 65.10%. While the Graham Number ($79.76) suggests a deep value play based on assets, the growth-based intrinsic value ($21.84) and a 0/100 technical trend indicate the market is pricing in a structural decline. The disconnect between the low P/B ratio (0.44) and the collapsing profitability suggests a value trap. Bearish insider activity from the CEO, CFO, and President further reinforces a negative outlook.

Strengths
Very low Price-to-Book ratio (0.44) suggesting significant asset backing
P/E ratio (12.74) is significantly lower than the sector average (37.43)
Extremely high Current Ratio (51.00) indicating short-term liquidity
Risks
Severe earnings contraction with YoY growth at -65.10%
Negative revenue growth (-15.00% YoY and -14.97% Q/Q)
Weak financial health as evidenced by a Piotroski F-Score of 2/9

Compare Another Pair

HD vs LGIH: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and LGI Homes, Inc. (LGIH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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