LGI Homes (NASDAQ:LGIH) vs. Great Portland Estates (OTCMKTS:GPEAF) Head to Head Review

LGI Homes (NASDAQ:LGIH) and Great Portland Estates (OTCMKTS:GPEAF) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Profitability

This table compares LGI Homes and Great Portland Estates’ 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%
Great Portland Estates	N/A	N/A	N/A

Volatility & Risk

LGI Homes has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Great Portland Estates has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for LGI Homes and Great Portland Estates, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGI Homes	1	2	1	0	2.00
Great Portland Estates	0	1	0	1	3.00

LGI Homes currently has a consensus target price of $93.33, indicating a potential upside of 62.09%. Given LGI Homes’ higher possible upside, analysts clearly believe LGI Homes is more favorable than Great Portland Estates.

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares LGI Homes and Great Portland Estates”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGI Homes	$2.16 billion	0.62	$196.07 million	$7.75	7.43
Great Portland Estates	N/A	N/A	N/A	N/A	N/A

LGI Homes has higher revenue and earnings than Great Portland Estates.

Summary

LGI Homes beats Great Portland Estates on 9 of the 11 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 Great Portland Estates

We are a FTSE 250 property investment and development company owning £2.5 billion of real estate in central London. We proactively manage our portfolio, flexing our activities in tune with London’s property cycle to deliver long-term out-performance. We create in-demand spaces that people want to be part of; helping our occupiers, local communities and the city to thrive.