Daito Trust Construction (OTCMKTS:DIFTY) versus Legacy Housing (NASDAQ:LEGH) Critical Analysis

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

Insider and Institutional Ownership

89.4% of Legacy Housing shares are owned by institutional investors. 30.1% of Legacy Housing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Legacy Housing	26.66%	9.47%	8.80%
Daito Trust Construction	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Legacy Housing and Daito Trust Construction, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Housing	0	4	0	0	2.00
Daito Trust Construction	0	0	0	0	0.00

Legacy Housing currently has a consensus target price of $21.00, indicating a potential downside of 1.96%. Given Legacy Housing’s stronger consensus rating and higher possible upside, analysts clearly believe Legacy Housing is more favorable than Daito Trust Construction.

Risk and Volatility

Legacy Housing has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Daito Trust Construction has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Valuation and Earnings

This table compares Legacy Housing and Daito Trust Construction”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Housing	$184.19 million	2.78	$61.64 million	$1.95	10.98
Daito Trust Construction	$12.10 billion	0.65	$619.46 million	$0.26	21.88

Daito Trust Construction has higher revenue and earnings than Legacy Housing. Legacy Housing is trading at a lower price-to-earnings ratio than Daito Trust Construction, indicating that it is currently the more affordable of the two stocks.

Summary

Legacy Housing beats Daito Trust Construction on 10 of the 13 factors compared between the two stocks.

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.

About Daito Trust Construction

Daito Trust Construction Co.,Ltd. designs, constructs, and rents apartments and condominiums in Japan. It operates through three segments: Construction, Real Estate, and Finance. The company design and construct rental housing and other structure construction; ironwork and construction; building management and renovation, and whole building leasing; rental housing tenant guarantor services; advertising; and LP gas supply businesses. Further, the company operates day service centers and childcare facilities; operates hotels in Malaysia; and bridge financing for general contractors. Additionally, it sells short-term insurance; offers credit card settlements services; rental apartment and condominium brokering services; provides real estate management and asset succession consulting services; and offers document shipping and destruction, printing, and administrative services. The company also engages in development and sale of investment-type apartment properties, and management of facility reservation portal sites. Daito Trust Construction Co.,Ltd. was incorporated in 1974 and is headquartered in Tokyo, Japan.