Star (NASDAQ:STHO – Get Free Report) and Legacy Housing (NASDAQ:LEGH – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Institutional & Insider Ownership
89.3% of Star shares are owned by institutional investors. Comparatively, 89.3% of Legacy Housing shares are owned by institutional investors. 3.7% of Star shares are owned by company insiders. Comparatively, 30.1% of Legacy Housing shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for Star and Legacy Housing, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star | 1 | 0 | 0 | 0 | 1.00 |
| Legacy Housing | 0 | 4 | 0 | 0 | 2.00 |
Volatility & Risk
Star has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Earnings & Valuation
This table compares Star and Legacy Housing”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star | $110.14 million | 0.84 | -$64.25 million | ($4.89) | -1.57 |
| Legacy Housing | $164.57 million | 2.88 | $41.81 million | $1.73 | 11.49 |
Legacy Housing has higher revenue and earnings than Star. Star is trading at a lower price-to-earnings ratio than Legacy Housing, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Star and Legacy Housing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star | -58.33% | 0.14% | 0.07% |
| Legacy Housing | 25.41% | 8.09% | 7.48% |
Summary
Legacy Housing beats Star on 12 of the 13 factors compared between the two stocks.
About Star
Star Holdings engages in the non-ground lease related commercial real estate businesses in the United States. Its portfolio primarily comprises interest in the Asbury Park Waterfront and Magnolia Green residential development projects. Star Holdings is based in New York, New York.
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.
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