Financial Survey: Legacy Housing (LEGH) versus Its Rivals

Legacy Housing (NASDAQ:LEGH) is one of 82 public companies in the “REAL ESTATE OPS” industry, but how does it contrast to its rivals? We will compare Legacy Housing to similar businesses based on the strength of its valuation, dividends, risk, profitability, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

89.4% of Legacy Housing shares are held by institutional investors. Comparatively, 58.4% of shares of all “REAL ESTATE OPS” companies are held by institutional investors. 30.6% of Legacy Housing shares are held by company insiders. Comparatively, 23.0% of shares of all “REAL ESTATE OPS” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Legacy Housing and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Housing	0	1	1	0	2.50
Legacy Housing Competitors	278	1008	1285	95	2.45

Legacy Housing presently has a consensus target price of $27.50, indicating a potential upside of 22.33%. As a group, “REAL ESTATE OPS” companies have a potential upside of 18.20%. Given Legacy Housing’s stronger consensus rating and higher possible upside, analysts plainly believe Legacy Housing is more favorable than its rivals.

Volatility & Risk

Legacy Housing has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Legacy Housing’s rivals have a beta of 0.94, indicating that their average share price is 6% less volatile than the S&P 500.

Earnings & Valuation

This table compares Legacy Housing and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Legacy Housing	$184.19 million	$61.64 million	9.82
Legacy Housing Competitors	$3.48 billion	$127.83 million	12.58

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

Profitability

This table compares Legacy Housing and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Housing	32.15%	11.71%	10.74%
Legacy Housing Competitors	-5.93%	-10.73%	0.15%

Summary

Legacy Housing beats its rivals on 8 of the 13 factors compared.

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.