LGI Homes (NASDAQ: LGIH) is one of 24 publicly-traded companies in the “Homebuilding” industry, but how does it compare to its competitors? We will compare LGI Homes to related companies based on the strength of its valuation, institutional ownership, earnings, risk, dividends, profitability and analyst recommendations.

Volatility & Risk

LGI Homes has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, LGI Homes’ competitors have a beta of 1.52, suggesting that their average share price is 52% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for LGI Homes and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LGI Homes 0 4 1 0 2.20
LGI Homes Competitors 275 1632 1896 38 2.44

LGI Homes currently has a consensus price target of $46.50, indicating a potential downside of 22.64%. As a group, “Homebuilding” companies have a potential downside of 4.28%. Given LGI Homes’ competitors stronger consensus rating and higher possible upside, analysts clearly believe LGI Homes has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares LGI Homes and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
LGI Homes $838.32 million $75.03 million 15.90
LGI Homes Competitors $3.63 billion $231.04 million 177.18

LGI Homes’ competitors have higher revenue and earnings than LGI Homes. LGI Homes is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares LGI Homes and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LGI Homes 9.22% 23.65% 10.25%
LGI Homes Competitors 9.92% 14.76% 7.96%

Insider & Institutional Ownership

93.4% of LGI Homes shares are held by institutional investors. Comparatively, 81.2% of shares of all “Homebuilding” companies are held by institutional investors. 13.6% of LGI Homes shares are held by insiders. Comparatively, 14.3% of shares of all “Homebuilding” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

LGI Homes competitors beat LGI Homes on 10 of the 13 factors compared.

About LGI Homes

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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