LGI Homes, Inc. (LGIH) vs M/I Homes, Inc. (MHO)

LGI Homes, Inc. and M/I Homes, Inc. are both Residential Construction companies. M/I Homes, Inc. is the larger, with a market value of $3.5B against $1.1B — 3.1× the size. M/I Homes, Inc. trades at the lower P/E: 11.4× against 17.5×. M/I Homes, Inc. grew revenue faster over the last twelve months: −4.99% against −17.0%. M/I Homes, Inc. has the higher net margin (7.44% vs 3.89%) and the higher return on invested capital (7.22% vs 1.19%). Across the 22 metrics below, M/I Homes, Inc. leads on 16 and LGI Homes, Inc. on 6.

Valuation

Metric LGIH MHO Residential Construction median
P/E 17.54 11.43 13.51
P/S 0.68 0.84 1.02
P/B 0.54 1.10 1.17
Price to free cash flow 6.30 17.36 16.79
EV/EBITDA 36.05 9.03 10.48
EV/Sales 1.57 0.89 1.31
Earnings yield 5.70% 8.75% 7.37%
Free cash flow yield 15.87% 5.76% 5.73%

Profitability

Metric LGIH MHO Residential Construction median
Gross margin 19.50% 22.60% 22.30%
Operating margin 4.08% 9.32% 9.03%
Net margin 3.89% 7.44% 7.30%
Free cash flow margin 10.82% 4.81% 8.46%
Return on equity 3.16% 10.06% 9.84%
Return on assets 1.67% 6.61% 7.43%
Return on invested capital 1.19% 7.22% 6.90%

Growth

Metric LGIH MHO Residential Construction median
Revenue growth (TTM) (16.95%) (4.99%) (7.37%)
EPS growth (last fiscal year) (62.41%) (25.22%) —
Revenue growth, 5-year CAGR (6.35%) 7.72% 8.74%
Net income growth, 5-year CAGR (25.86%) 10.93% 8.43%

Health

Metric LGIH MHO Residential Construction median
Debt to equity 0.74 0.29 0.20
Current ratio 17.74 7.65 3.56
Net debt to EBITDA 18.97 0.54 0.28

Dividend

Metric LGIH MHO Residential Construction median
Dividend yield — — 0.89%
Payout ratio 0.00 0.00 0.00

Size

Metric LGIH MHO Residential Construction median
Market cap 1.14b 3.48b 4.18b

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