Head-To-Head Survey: Safe and Green Development (NASDAQ:SGD) and LGI Homes (NASDAQ:LGIH)

Safe and Green Development (NASDAQ:SGD) and LGI Homes (NASDAQ:LGIH) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Earnings and Valuation

This table compares Safe and Green Development and LGI Homes”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safe and Green Development	$210,000.00	27.31	-$8.91 million	N/A	N/A
LGI Homes	$2.20 billion	0.56	$196.07 million	$6.63	8.02

LGI Homes has higher revenue and earnings than Safe and Green Development.

Institutional and Insider Ownership

2.6% of Safe and Green Development shares are held by institutional investors. Comparatively, 84.9% of LGI Homes shares are held by institutional investors. 14.3% of Safe and Green Development shares are held by company insiders. Comparatively, 12.3% of LGI Homes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Safe and Green Development and LGI Homes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safe and Green Development	1	0	0	0	1.00
LGI Homes	2	2	2	0	2.00

LGI Homes has a consensus price target of $75.67, indicating a potential upside of 42.31%. Given LGI Homes’ stronger consensus rating and higher possible upside, analysts clearly believe LGI Homes is more favorable than Safe and Green Development.

Profitability

This table compares Safe and Green Development and LGI Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safe and Green Development	-766.20%	-741.44%	-60.41%
LGI Homes	7.63%	8.00%	4.21%

Risk and Volatility

Safe and Green Development has a beta of 3.6, meaning that its stock price is 260% more volatile than the S&P 500. Comparatively, LGI Homes has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

Summary

LGI Homes beats Safe and Green Development on 9 of the 12 factors compared between the two stocks.

About Safe and Green Development

Safe and Green Development Corporation operates as a real estate development company. It focuses on building single and multifamily projects. The company was formerly known as SGB Development Corp. and changed its name to Safe and Green Development Corporation in December 2022. The company was incorporated in 2021 and is based in Miami, Florida. Safe and Green Development Corporation is a subsidiary of Safe & Green Holdings Corp.

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.