LGI Homes (NASDAQ:LGIH) vs. AMREP (NYSE:AXR) Financial Survey

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

Valuation & Earnings

This table compares LGI Homes and AMREP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGI Homes	$2.20 billion	0.60	$196.07 million	$7.75	7.34
AMREP	$49.69 million	2.41	$12.72 million	$2.37	9.55

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

Analyst Recommendations

This is a breakdown of current recommendations for LGI Homes and AMREP, as provided by MarketBeat.

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

LGI Homes currently has a consensus target price of $93.33, indicating a potential upside of 64.06%. Given LGI Homes’ stronger consensus rating and higher possible upside, research analysts plainly believe LGI Homes is more favorable than AMREP.

Volatility and Risk

LGI Homes has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, AMREP has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares LGI Homes and AMREP’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%
AMREP	25.59%	10.22%	9.91%

Institutional and Insider Ownership

84.9% of LGI Homes shares are held by institutional investors. Comparatively, 59.9% of AMREP shares are held by institutional investors. 12.3% of LGI Homes shares are held by company insiders. Comparatively, 37.6% of AMREP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

LGI Homes beats AMREP on 8 of the 14 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 AMREP

AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.