LGI Homes (LGIH) and Its Peers Head to Head Analysis
LGI Homes (NASDAQ: LGIH) is one of 24 publicly-traded companies in the “Homebuilding” industry, but how does it weigh in compared to its peers? We will compare LGI Homes to similar companies based on the strength of its dividends, institutional ownership, earnings, analyst recommendations, profitability, valuation and risk.
Institutional & Insider Ownership
93.9% of LGI Homes shares are held by institutional investors. Comparatively, 78.0% of shares of all “Homebuilding” companies are held by institutional investors. 13.6% of LGI Homes shares are held by company insiders. Comparatively, 13.1% of shares of all “Homebuilding” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares LGI Homes and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LGI Homes Competitors||9.74%||14.79%||7.94%|
This is a breakdown of current ratings for LGI Homes and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LGI Homes Competitors||282||1673||1917||38||2.44|
LGI Homes presently has a consensus price target of $53.00, suggesting a potential downside of 21.35%. As a group, “Homebuilding” companies have a potential downside of 0.37%. Given LGI Homes’ peers stronger consensus rating and higher possible upside, analysts plainly believe LGI Homes has less favorable growth aspects than its peers.
Risk and Volatility
LGI Homes has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, LGI Homes’ peers have a beta of 1.52, meaning that their average stock price is 52% more volatile than the S&P 500.
Valuation and Earnings
This table compares LGI Homes and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|LGI Homes||$838.32 million||$75.03 million||15.60|
|LGI Homes Competitors||$3.83 billion||$231.12 million||494.34|
LGI Homes’ peers have higher revenue and earnings than LGI Homes. LGI Homes is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
LGI Homes peers beat LGI Homes on 9 of the 13 factors compared.
LGI Homes Company Profile
LGI Homes, Inc. is a homebuilder and land developer. The Company is engaged in the design, construction, marketing and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington and Tennessee. The Company operates through five segments: the Texas division, the Southwest division, the Southeast division, the Florida division and the Northwest division. The Texas division includes homebuilding operations in Houston, Dallas/Fort Worth, San Antonio and Austin locations. The Southwest division includes homebuilding operations in Phoenix, Tucson, Albuquerque, Denver and Colorado Springs locations. The Southeast division includes homebuilding operations in Atlanta, Charlotte and Nashville locations. The Florida division includes homebuilding operations in Tampa, Orlando, Fort Myers and Jacksonville locations. The Northwest division includes homebuilding operations in Seattle location.
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