Head-To-Head Review: LGI Homes (NASDAQ:LGIH) & Crown Crafts (NASDAQ:CRWS)

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

Profitability

This table compares LGI Homes and Crown Crafts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LGI Homes	3.88%	3.55%	1.88%
Crown Crafts	5.99%	12.79%	6.84%

Analyst Ratings

This is a summary of recent ratings for LGI Homes and Crown Crafts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGI Homes	2	1	2	0	2.00
Crown Crafts	0	1	0	0	2.00

LGI Homes presently has a consensus price target of $68.00, suggesting a potential upside of 55.18%. Given LGI Homes’ higher possible upside, equities analysts clearly believe LGI Homes is more favorable than Crown Crafts.

Earnings & Valuation

This table compares LGI Homes and Crown Crafts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGI Homes	$1.71 billion	0.60	$72.55 million	$2.85	15.38
Crown Crafts	$82.27 million	0.31	$1.84 million	$0.47	5.09

LGI Homes has higher revenue and earnings than Crown Crafts. Crown Crafts is trading at a lower price-to-earnings ratio than LGI Homes, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

84.9% of LGI Homes shares are owned by institutional investors. Comparatively, 30.2% of Crown Crafts shares are owned by institutional investors. 12.6% of LGI Homes shares are owned by insiders. Comparatively, 12.3% of Crown Crafts 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.

Volatility & Risk

LGI Homes has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Crown Crafts has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Summary

LGI Homes beats Crown Crafts on 10 of the 13 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 Crown Crafts

Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.