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

Profitability

This table compares LGI Homes and its competitors’ 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 9.63% 14.54% 7.84%

Institutional & Insider Ownership

92.0% of LGI Homes shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Homebuilding” companies are owned by institutional investors. 13.6% of LGI Homes shares are owned by company insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

LGI Homes has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, LGI Homes’ competitors have a beta of 1.52, indicating that their average share price is 52% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
LGI Homes $838.32 million $75.03 million 15.51
LGI Homes Competitors $3.83 billion $231.12 million 465.39

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

Analyst Ratings

This is a summary of recent ratings for LGI Homes and its competitors, 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 282 1668 1901 38 2.44

LGI Homes currently has a consensus target price of $53.00, indicating a potential downside of 20.71%. As a group, “Homebuilding” companies have a potential downside of 1.57%. Given LGI Homes’ competitors stronger consensus rating and higher probable upside, analysts plainly believe LGI Homes has less favorable growth aspects than its competitors.

Summary

LGI Homes competitors 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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