Reviewing Everus (NYSE:ECG) and LGI Homes (NASDAQ:LGIH)

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

Earnings and Valuation

This table compares LGI Homes and Everus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGI Homes	$2.20 billion	0.80	$199.23 million	$8.30	9.06
Everus	$2.85 billion	0.68	$143.42 million	N/A	N/A

LGI Homes has higher earnings, but lower revenue than Everus.

Analyst Recommendations

This is a summary of current recommendations for LGI Homes and Everus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGI Homes	1	2	1	0	2.00
Everus	0	2	2	0	2.50

LGI Homes currently has a consensus price target of $118.33, indicating a potential upside of 57.36%. Everus has a consensus price target of $67.33, indicating a potential upside of 78.49%. Given Everus’ stronger consensus rating and higher possible upside, analysts plainly believe Everus is more favorable than LGI Homes.

Institutional & Insider Ownership

84.9% of LGI Homes shares are owned by institutional investors. 12.4% of LGI Homes shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares LGI Homes and Everus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LGI Homes	8.75%	10.32%	5.46%
Everus	N/A	N/A	N/A

Summary

LGI Homes beats Everus on 7 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 Everus

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.