Head to Head Analysis: Henderson Land Development (OTCMKTS:HLDCY) & Legacy Housing (NASDAQ:LEGH)

Henderson Land Development (OTCMKTS:HLDCY) and Legacy Housing (NASDAQ:LEGH) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Institutional and Insider Ownership

89.4% of Legacy Housing shares are held by institutional investors. 30.1% of Legacy Housing shares are held 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.

Valuation and Earnings

This table compares Henderson Land Development and Legacy Housing”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henderson Land Development	$2.63 billion	7.00	$807.15 million	N/A	N/A
Legacy Housing	$184.19 million	2.68	$61.64 million	$1.95	10.62

Henderson Land Development has higher revenue and earnings than Legacy Housing.

Volatility & Risk

Henderson Land Development has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Henderson Land Development and Legacy Housing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henderson Land Development	N/A	N/A	N/A
Legacy Housing	26.66%	9.47%	8.80%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Henderson Land Development and Legacy Housing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henderson Land Development	0	0	0	1	4.00
Legacy Housing	1	3	0	0	1.75

Legacy Housing has a consensus target price of $21.00, suggesting a potential upside of 1.38%. Given Legacy Housing’s higher possible upside, analysts plainly believe Legacy Housing is more favorable than Henderson Land Development.

Summary

Legacy Housing beats Henderson Land Development on 7 of the 12 factors compared between the two stocks.

About Henderson Land Development

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Hotel Room Operation, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Hotel Room Operation segment operates hotel properties. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials. It also engages in food and beverage, and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

About Legacy Housing

Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.