Analyzing Smith Douglas Homes (NYSE:SDHC) & LEG Immobilien (OTCMKTS:LEGIF)

Smith Douglas Homes (NYSE:SDHC) and LEG Immobilien (OTCMKTS:LEGIF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares Smith Douglas Homes and LEG Immobilien’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith Douglas Homes	1.43%	1.74%	1.38%
LEG Immobilien	50.86%	7.53%	2.83%

Analyst Recommendations

This is a summary of current ratings and price targets for Smith Douglas Homes and LEG Immobilien, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Douglas Homes	1	4	0	0	1.80
LEG Immobilien	0	1	0	0	2.00

Smith Douglas Homes currently has a consensus price target of $18.90, indicating a potential upside of 9.03%. Given Smith Douglas Homes’ higher possible upside, equities analysts clearly believe Smith Douglas Homes is more favorable than LEG Immobilien.

Volatility & Risk

Smith Douglas Homes has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, LEG Immobilien has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Valuation and Earnings

This table compares Smith Douglas Homes and LEG Immobilien”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Douglas Homes	$975.46 million	0.91	$16.07 million	$1.59	10.90
LEG Immobilien	$1.41 billion	4.44	$71.42 million	$7.64	11.07

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

Summary

LEG Immobilien beats Smith Douglas Homes on 9 of the 11 factors compared between the two stocks.

About Smith Douglas Homes

Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp. was founded in 2008 and is headquartered in Woodstock, Georgia.

About LEG Immobilien

LEG Immobilien SE, together with its subsidiaries, operates as an integrated property company in Germany. The company engages in the performance of services and management of equity investments; property management and location development; performance of services for third parties and housing industry services; and generation of electricity and heat activities. It also provides information technology (IT) services for third parties; and management services for third-party properties. The company's property portfolio consisted of residential units; commercial units; and garages and parking spaces in North Rhine-Westphalia. LEG Immobilien SE was founded in 1970 and is headquartered in Düsseldorf, Germany.