LGI Homes (NASDAQ:LGIH) & Grow Capital (OTCMKTS:GRWC) Head-To-Head Contrast

LGI Homes (NASDAQ:LGIH) and Grow Capital (OTCMKTS:GRWC) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Risk & Volatility

LGI Homes has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, Grow Capital has a beta of 25.08, indicating that its stock price is 2,408% more volatile than the S&P 500.

Insider & Institutional Ownership

84.9% of LGI Homes shares are owned by institutional investors. 12.3% of LGI Homes shares are owned by company insiders. Comparatively, 43.9% of Grow Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares LGI Homes and Grow Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LGI Homes	8.46%	9.49%	5.00%
Grow Capital	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for LGI Homes and Grow Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGI Homes	1	2	1	0	2.00
Grow Capital	0	0	0	0	0.00

LGI Homes currently has a consensus price target of $104.33, indicating a potential upside of 111.63%. Given LGI Homes’ stronger consensus rating and higher probable upside, research analysts clearly believe LGI Homes is more favorable than Grow Capital.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGI Homes	$2.20 billion	0.52	$196.07 million	$7.75	6.36
Grow Capital	$2.66 million	11.39	-$1.30 million	N/A	N/A

LGI Homes has higher revenue and earnings than Grow Capital.

Summary

LGI Homes beats Grow Capital on 9 of the 12 factors compared between the two stocks.

About LGI Homes

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.

About Grow Capital

Grow Capital, Inc. operates in the financial technology sector. It provides software, technology, and services to financial services firms and advisors. The company's software suite delivers customized back office compliance, multi-pay commission processing, and new client application submission system, as well as digital engagement marketing services centric to financial services. It also provides software customization, licensing, and subscription service contracts, as well as ongoing customization and maintenance services; and ad hoc services, including web hosting, website development, and other complementary professional services. The company was incorporated in 1999 and is based in Henderson, Nevada.