Cavco Industries (NASDAQ:CVCO) and LEGACY HSG CORP/SH (NASDAQ:LEGH) are both small-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings and Valuation

This table compares Cavco Industries and LEGACY HSG CORP/SH’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cavco Industries $871.23 million 1.50 $61.50 million N/A N/A
LEGACY HSG CORP/SH N/A N/A N/A N/A N/A

Cavco Industries has higher revenue and earnings than LEGACY HSG CORP/SH.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cavco Industries and LEGACY HSG CORP/SH, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cavco Industries 0 1 0 0 2.00
LEGACY HSG CORP/SH 0 0 2 0 3.00

Cavco Industries currently has a consensus target price of $170.00, suggesting a potential upside of 18.66%. LEGACY HSG CORP/SH has a consensus target price of $17.00, suggesting a potential upside of 36.00%. Given LEGACY HSG CORP/SH’s stronger consensus rating and higher probable upside, analysts plainly believe LEGACY HSG CORP/SH is more favorable than Cavco Industries.

Insider and Institutional Ownership

92.1% of Cavco Industries shares are owned by institutional investors. 8.5% of Cavco Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Cavco Industries and LEGACY HSG CORP/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cavco Industries 8.28% 15.72% 10.74%
LEGACY HSG CORP/SH N/A N/A N/A

Summary

Cavco Industries beats LEGACY HSG CORP/SH on 6 of the 9 factors compared between the two stocks.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails manufactured homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its manufactured homes under the Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes, Friendship Homes, Chariot Eagle, and Lexington Home brands. It also builds park model RVs; vacation cabins; and systems-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces modular homes, such as single and multi-module ranch, split-level, and Cape Cod style homes, as well as two and three story homes and multi-family units primarily under the Nationwide Homes brand. Further, it provides conforming mortgages, non-conforming mortgages, and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail sales centers, as well as various independent retailers, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. As of March 31, 2018, it operated 39 retail centers in Oregon, Arizona, New Mexico, Texas, Oklahoma, and Florida, Texas. The company also distributes its homes through a network of independent distribution points in 47 states, as well as Canada and Japan; and through planned community operators and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

About LEGACY HSG CORP/SH

Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides services for the transport of mobile homes; offers wholesale financing services to dealers and mobile home parks; and provides retail financing services to consumers. The company markets its homes under the Legacy brand name through a network of 117 independent and 11 company-owned retail locations, as well as direct sales to owners of manufactured home communities in 15 states in the United States. Its customers include young and working class families, as well as persons aged 55 and older. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.

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