LGI Homes (NASDAQ: LGIH) is one of 23 public companies in the “Homebuilding” industry, but how does it contrast to its peers? We will compare LGI Homes to related businesses based on the strength of its earnings, dividends, institutional ownership, valuation, risk, profitability and analyst recommendations.

Volatility and Risk

LGI Homes has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, LGI Homes’ peers have a beta of 1.51, indicating that their average stock price is 51% more volatile than the S&P 500.

Valuation and Earnings

This table compares LGI Homes and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LGI Homes $838.32 million $75.03 million 16.21
LGI Homes Competitors $3.83 billion $231.12 million 458.20

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

Profitability

This table compares LGI Homes and its peers’ 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 9.75% 14.94% 7.99%

Analyst Ratings

This is a summary of current ratings for LGI Homes and its peers, 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 263 1565 1604 26 2.40

LGI Homes currently has a consensus target price of $53.00, indicating a potential downside of 24.12%. As a group, “Homebuilding” companies have a potential upside of 0.19%. Given LGI Homes’ peers stronger consensus rating and higher probable upside, analysts clearly believe LGI Homes has less favorable growth aspects than its peers.

Institutional & Insider Ownership

92.0% of LGI Homes shares are owned by institutional investors. Comparatively, 79.0% 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

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

LGI Homes Company Profile

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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