LGI Homes (NASDAQ: LGIH) is one of 24 public companies in the “Homebuilding” industry, but how does it contrast to its rivals? We will compare LGI Homes to related companies based on the strength of its analyst recommendations, risk, institutional ownership, valuation, earnings, dividends and profitability.

Profitability

This table compares LGI Homes and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LGI Homes 9.26% 25.51% 11.10%
LGI Homes Competitors 9.74% 14.79% 7.94%

Earnings & Valuation

This table compares LGI Homes and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
LGI Homes $838.32 million $75.03 million 14.70
LGI Homes Competitors $3.83 billion $231.12 million 506.49

LGI Homes’ rivals have higher revenue and earnings than LGI Homes. LGI Homes is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

LGI Homes has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, LGI Homes’ rivals have a beta of 1.52, indicating that their average share price is 52% more volatile than the S&P 500.

Insider and Institutional Ownership

93.9% of LGI Homes shares are owned by institutional investors. Comparatively, 78.0% of shares of all “Homebuilding” companies are owned by institutional investors. 13.6% of LGI Homes shares are owned by insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for LGI Homes and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LGI Homes 0 4 2 0 2.33
LGI Homes Competitors 281 1665 1912 38 2.44

LGI Homes presently has a consensus price target of $53.00, suggesting a potential downside of 16.56%. As a group, “Homebuilding” companies have a potential downside of 1.36%. Given LGI Homes’ rivals stronger consensus rating and higher possible upside, analysts clearly believe LGI Homes has less favorable growth aspects than its rivals.

Summary

LGI Homes rivals beat LGI Homes on 9 of the 13 factors compared.

About LGI Homes

LGI Homes, Inc. is a homebuilder and land developer. The Company is engaged in the design, construction, marketing and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington and Tennessee. The Company operates through five segments: the Texas division, the Southwest division, the Southeast division, the Florida division and the Northwest division. The Texas division includes homebuilding operations in Houston, Dallas/Fort Worth, San Antonio and Austin locations. The Southwest division includes homebuilding operations in Phoenix, Tucson, Albuquerque, Denver and Colorado Springs locations. The Southeast division includes homebuilding operations in Atlanta, Charlotte and Nashville locations. The Florida division includes homebuilding operations in Tampa, Orlando, Fort Myers and Jacksonville locations. The Northwest division includes homebuilding operations in Seattle location.

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