Financial Review: LGI Homes (NASDAQ:LGIH) vs. Land Securities Group (OTCMKTS:LSGOF)

LGI Homes (NASDAQ:LGIH) and Land Securities Group (OTCMKTS:LSGOF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares LGI Homes and Land Securities Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LGI Homes	7.63%	8.00%	4.21%
Land Securities Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for LGI Homes and Land Securities Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGI Homes	1	2	2	0	2.20
Land Securities Group	0	0	0	0	0.00

LGI Homes currently has a consensus target price of $75.67, suggesting a potential upside of 43.72%. Given LGI Homes’ stronger consensus rating and higher possible upside, research analysts clearly believe LGI Homes is more favorable than Land Securities Group.

Earnings and Valuation

This table compares LGI Homes and Land Securities Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGI Homes	$2.20 billion	0.55	$196.07 million	$6.63	7.94
Land Securities Group	$1.07 billion	5.34	$505.26 million	N/A	N/A

Land Securities Group has lower revenue, but higher earnings than LGI Homes.

Institutional and Insider Ownership

84.9% of LGI Homes shares are owned by institutional investors. 12.3% of LGI Homes shares 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.

Risk and Volatility

LGI Homes has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Land Securities Group has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Summary

LGI Homes beats Land Securities Group on 10 of the 12 factors compared between the two stocks.

About LGI Homes

LGI Homes, Inc. designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to large institutions looking to acquire single-family rental properties. It serves customers in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland, and Utah. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

About Land Securities Group

At Landsec, we build and invest in buildings, spaces and partnerships to create sustainable places, connect communities and realise potential. We are one of the largest real estate companies in Europe, with a £12 billion portfolio of retail, leisure, workspace and residential hubs. Landsec is shaping a better future by leading our industry on environmental and social sustainability while delivering value for our shareholders, great experiences for our guests and positive change for our communities.