Critical Survey: LGI Homes (NASDAQ:LGIH) and Land Securities Group (OTCMKTS:LSGOF)

Land Securities Group (OTCMKTS:LSGOF) and LGI Homes (NASDAQ:LGIH) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Profitability

This table compares Land Securities Group and LGI Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Land Securities Group	N/A	N/A	N/A
LGI Homes	7.63%	8.00%	4.21%

Volatility and Risk

Land Securities Group has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, LGI Homes has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Insider & 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Land Securities Group and LGI Homes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Land Securities Group	0	0	0	0	0.00
LGI Homes	1	2	2	0	2.20

LGI Homes has a consensus target price of $75.67, indicating a potential upside of 45.48%. Given LGI Homes’ stronger consensus rating and higher probable upside, analysts plainly believe LGI Homes is more favorable than Land Securities Group.

Earnings and Valuation

This table compares Land Securities Group and LGI Homes”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Land Securities Group	$1.07 billion	5.34	$505.26 million	N/A	N/A
LGI Homes	$2.20 billion	0.54	$196.07 million	$6.63	7.84

Land Securities Group has higher earnings, but lower revenue than LGI Homes.

Summary

LGI Homes beats Land Securities Group on 10 of the 12 factors compared between the two stocks.

About Land Securities Group

At Landsec, we build and invest in buildings, spaces and partnerships to create sustainable places, connect communities and realise potential. We are one of the largest real estate companies in Europe, with a £12 billion portfolio of retail, leisure, workspace and residential hubs. Landsec is shaping a better future by leading our industry on environmental and social sustainability while delivering value for our shareholders, great experiences for our guests and positive change for our communities.

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.