Critical Contrast: Howard Hughes (NYSE:HHH) versus LGI Homes (NASDAQ:LGIH)

Howard Hughes (NYSE:HHHGet Free Report) and LGI Homes (NASDAQ:LGIHGet Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings for Howard Hughes and LGI Homes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Howard Hughes 0 1 2 0 2.67
LGI Homes 1 2 1 0 2.00

Howard Hughes presently has a consensus target price of $80.33, indicating a potential upside of 19.35%. LGI Homes has a consensus target price of $104.33, indicating a potential upside of 107.46%. Given LGI Homes’ higher probable upside, analysts plainly believe LGI Homes is more favorable than Howard Hughes.

Volatility and Risk

Howard Hughes has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, LGI Homes has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.

Profitability

This table compares Howard Hughes and LGI Homes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Howard Hughes 14.27% 10.21% 3.08%
LGI Homes 8.46% 9.49% 5.00%

Institutional & Insider Ownership

93.8% of Howard Hughes shares are owned by institutional investors. Comparatively, 84.9% of LGI Homes shares are owned by institutional investors. 33.0% of Howard Hughes shares are owned by company insiders. Comparatively, 12.3% of LGI Homes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Howard Hughes and LGI Homes”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Howard Hughes $1.75 billion 1.94 $200.55 million $5.21 12.92
LGI Homes $2.20 billion 0.53 $196.07 million $7.75 6.49

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

Summary

Howard Hughes beats LGI Homes on 9 of the 14 factors compared between the two stocks.

About Howard Hughes

(Get Free Report)

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.

About LGI Homes

(Get Free Report)

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.

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