Safestore (OTCMKTS:SFSHF) & Legacy Housing (NASDAQ:LEGH) Financial Review

Safestore (OTCMKTS:SFSHFGet Free Report) and Legacy Housing (NASDAQ:LEGHGet Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Safestore and Legacy Housing, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safestore 1 1 1 0 2.00
Legacy Housing 0 4 0 0 2.00

Legacy Housing has a consensus target price of $21.00, indicating a potential upside of 13.54%. Given Legacy Housing’s higher possible upside, analysts clearly believe Legacy Housing is more favorable than Safestore.

Earnings & Valuation

This table compares Safestore and Legacy Housing”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Safestore $306.59 million 6.81 $145.42 million N/A N/A
Legacy Housing $164.57 million 2.68 $41.81 million $1.73 10.69

Safestore has higher revenue and earnings than Legacy Housing.

Profitability

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

Net Margins Return on Equity Return on Assets
Safestore N/A N/A N/A
Legacy Housing 25.41% 8.09% 7.48%

Volatility & Risk

Safestore has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Summary

Legacy Housing beats Safestore on 6 of the 10 factors compared between the two stocks.

About Safestore

(Get Free Report)

Safestore is the UK’s largest self storage group with 190 stores on 31 October 2023, comprising 133 wholly owned stores in the UK (including 73 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool, Sheffield, Leeds, Newcastle, and Bristol), 29 wholly owned stores in the Paris region, 11 stores in Spain, 11 stores in the Netherlands and 6 stores in Belgium. In addition, the Group operates 7 stores in Germany under a Joint Venture agreement with Carlyle. Safestore operates more self storage sites inside the M25 and in central Paris than any competitor providing more proximity to customers in the wealthiest and more densely populated UK and French markets. Safestore was founded in the UK in 1998. It acquired the French business “Une Pièce en Plus” (“UPP”) in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli. Safestore has been listed on the London Stock Exchange since 2007. It entered the FTSE 250 index in October 2015. The Group provides storage to around 90,000 personal and business customers. As of 31 October 2023, Safestore had a maximum lettable area (“MLA”) of 8.090 million sq ft (excluding the expansion pipeline stores) of which 6.231 million sq ft was occupied. Safestore employs around 750 people in the UK, Paris, Spain, the Netherlands, and Belgium.

About Legacy Housing

(Get Free Report)

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.

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