LGIH vs. LEN

Last updated Jun 24, 2026

LGIH (LGI Homes, Inc.) and LEN (Lennar Corporation) are both stocks. Both operate in the Residential Construction industry within the Consumer Cyclical sector. Over the past 10 years, LGIH returned 6.42%/yr vs 8.56%/yr for LEN. A 0.68 correlation means they provide meaningful diversification when combined.

Performance

LGIH vs. LEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LGI Homes, Inc. (LGIH) and Lennar Corporation (LEN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LGIH achieves a 30.49% return, which is significantly higher than LEN's -14.20% return. Over the past 10 years, LGIH has underperformed LEN with an annualized return of 6.42%, while LEN has yielded a comparatively higher 8.56% annualized return.

LGIH

• 1D: 1.65%
• 1M: 21.58%
• YTD: 30.49%
• 6M: 32.15%
• 1Y: 13.28%
• 3Y*: -24.21%
• 5Y*: -18.36%
• 10Y*: 6.42%

LEN

• 1D: -0.10%
• 1M: -1.70%
• YTD: -14.20%
• 6M: -15.79%
• 1Y: -19.58%
• 3Y*: -8.25%
• 5Y*: 0.03%
• 10Y*: 8.56%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LGIH vs. LEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LGIH LGI Homes, Inc.	30.49%	-51.95%	-32.86%	43.80%	-40.06%	45.94%	49.82%	56.24%	-39.73%	161.16%
LEN Lennar Corporation	-14.20%	-20.80%	-7.32%	66.92%	-20.64%	53.99%	37.97%	42.96%	-37.91%	50.28%

Correlation

The correlation between LGIH and LEN is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Nov 7, 2013	0.68

The correlation between LGIH and LEN shifts across timeframes, from 0.68 (all time) to 0.78 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap LGIH : $1.30B LEN : $21.19B
EPS LGIH : $3.04 LEN : $7.91
PE Ratio LGIH : 18.41 LEN : 11.05
PS Ratio LGIH : 0.96 LEN : 0.66
Total Revenue (TTM) LGIH : $1.35B LEN : $32.74B
Gross Profit (TTM) LGIH : $279.83M LEN : $1.72B
EBITDA (TTM) LGIH : $95.64M LEN : $2.36B

Return for Risk

LGIH vs. LEN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LGIH

LGIH Risk / Return Rank: 50
LGIH Sharpe Ratio Rank: 51
LGIH Sortino Ratio Rank: 52
LGIH Omega Ratio Rank: 48
LGIH Calmar Ratio Rank: 49
LGIH Martin Ratio Rank: 48

LEN

LEN Risk / Return Rank: 22
LEN Sharpe Ratio Rank: 19
LEN Sortino Ratio Rank: 19
LEN Omega Ratio Rank: 20
LEN Calmar Ratio Rank: 26
LEN Martin Ratio Rank: 25

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LGIH vs. LEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LGI Homes, Inc. (LGIH) and Lennar Corporation (LEN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LGIH	LEN	Difference
Sharpe ratio: Return per unit of total volatility	0.22	-0.52	+0.74
Sortino ratio: Return per unit of downside risk	0.85	-0.58	+1.43
Omega ratio: Gain probability vs. loss probability	1.09	0.93	+0.15
Calmar ratio: Return relative to maximum drawdown	0.27	-0.47	+0.75
Martin ratio: Return relative to average drawdown	0.50	-0.86	+1.36

LGIH vs. LEN - Sharpe Ratio Comparison

The current LGIH Sharpe Ratio is 0.22, which is higher than the LEN Sharpe Ratio of -0.52. The chart below compares the historical Sharpe Ratios of LGIH and LEN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LGIH vs. LEN - Drawdown Comparison

The maximum LGIH drawdown since its inception was -81.33%, smaller than the maximum LEN drawdown of -94.28%. Use the drawdown chart below to compare losses from any high point for LGIH and LEN.

Drawdown Indicators

	LGIH	LEN	Difference
Max Drawdown Largest peak-to-trough decline	-81.33%	-94.28%	+12.95%
Max Drawdown (1Y) Largest decline over 1 year	-49.25%	-41.39%	-7.86%
Max Drawdown (3Y) Largest decline over 3 years	-75.68%	-54.51%	-21.17%
Max Drawdown (5Y) Largest decline over 5 years	-80.24%	-54.51%	-25.73%
Max Drawdown (10Y) Largest decline over 10 years	-81.33%	-58.80%	-22.53%
Current Drawdown Current decline from peak	-69.43%	-51.71%	-17.72%
Average Drawdown Average peak-to-trough decline	-28.18%	-26.31%	-1.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	26.73%	22.86%	+3.87%

Volatility

LGIH vs. LEN - Volatility Comparison

LGI Homes, Inc. (LGIH) has a higher volatility of 16.29% compared to Lennar Corporation (LEN) at 11.29%. This indicates that LGIH's price experiences larger fluctuations and is considered to be riskier than LEN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LGIH	LEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.29%	11.29%	+5.00%
Volatility (6M) Calculated over the trailing 6-month period	42.53%	26.93%	+15.60%
Volatility (1Y) Calculated over the trailing 1-year period	60.82%	37.77%	+23.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.28%	34.64%	+14.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	50.64%	37.35%	+13.29%

Dividends

LGIH vs. LEN - Dividend Comparison

LGIH has not paid dividends to shareholders, while LEN's dividend yield for the trailing twelve months is around 2.29%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LEN Lennar Corporation	2.29%	1.95%	1.47%	1.01%	1.66%	0.86%	0.82%	0.29%	0.41%	0.25%	0.37%	0.33%
LGIH LGI Homes, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

Frequently Asked Questions

Can I hold both LGIH and LEN in my portfolio?

LGIH and LEN have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LGIH or LEN?

LGIH has higher volatility (16.29%) compared to LEN (11.29%). In terms of maximum drawdown, LGIH dropped -81.33% vs LEN's -94.28%.

Which has better risk-adjusted returns?

LGIH currently has the higher Sharpe Ratio (0.22 vs -0.52), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.