Legacy Housing (NASDAQ:LEGH – Get Free Report) and Tejon Ranch (NYSE:TRC – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Risk & Volatility
Legacy Housing has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Tejon Ranch has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
Insider & Institutional Ownership
89.4% of Legacy Housing shares are owned by institutional investors. Comparatively, 60.6% of Tejon Ranch shares are owned by institutional investors. 30.6% of Legacy Housing shares are owned by insiders. Comparatively, 22.4% of Tejon Ranch shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Legacy Housing | 30.00% | 11.11% | 10.27% |
| Tejon Ranch | -1.17% | -0.11% | -0.09% |
Valuation and Earnings
This table compares Legacy Housing and Tejon Ranch”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Legacy Housing | $184.19 million | 2.87 | $61.64 million | $2.24 | 9.90 |
| Tejon Ranch | $41.89 million | 9.98 | $2.69 million | ($0.01) | -1,555.00 |
Legacy Housing has higher revenue and earnings than Tejon Ranch. Tejon Ranch is trading at a lower price-to-earnings ratio than Legacy Housing, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Legacy Housing and Tejon Ranch, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Legacy Housing | 0 | 1 | 1 | 0 | 2.50 |
| Tejon Ranch | 1 | 0 | 0 | 0 | 1.00 |
Legacy Housing currently has a consensus target price of $26.00, indicating a potential upside of 17.22%. Given Legacy Housing’s stronger consensus rating and higher possible upside, equities analysts plainly believe Legacy Housing is more favorable than Tejon Ranch.
Summary
Legacy Housing beats Tejon Ranch on 13 of the 14 factors compared between the two stocks.
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.
About Tejon Ranch
Tejon Ranch Co., together with its subsidiaries, operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. The Commercial/Industrial Real Estate Development segment engages in the planning and permitting of land for development; construction of infrastructure projects, pre-leased buildings, and buildings to be leased or sold; and sale of land to third parties for their own development. It is also involved in the activities related to communications leases, a power plant lease, and landscape maintenance. This segment leases land to various auto service stations with convenience stores, fast-food operations, service diner-style restaurant, a motel, an antique shop, and a post office; various microwave repeater locations, radio and cellular transmitter sites, and fiber optic cable routes; and package of land for an electric power plant. The Resort/Residential Real Estate Development segment engages in land entitlement, planning, pre-construction engineering, stewardship, and conservation activities. The Mineral Resources segment includes oil and gas royalties, rock and aggregate royalties, and royalties from a cement operation leased to National Cement Company of California, Inc.; and the management of water assets and infrastructure projects. The Farming segment farms permanent crops, such as wine grapes, almonds, and pistachios in package of land. It also manages the farming of alfalfa and forage mix on package of land in the Antelope Valley; and leases package of land for growing vegetables, as well as almonds. The Ranch Operations segment provides game management and ancillary land services comprising grazing leases and filming, as well as various guided hunts. Tejon Ranch Co. was founded in 1843 and is based in Lebec, California.
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