Reviewing Legacy Housing (LEGH) and Its Competitors

Legacy Housing (NASDAQ:LEGH) is one of 82 public companies in the “REAL ESTATE OPS” industry, but how does it compare to its rivals? We will compare Legacy Housing to related businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.

Profitability

This table compares Legacy Housing and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Housing	32.15%	11.71%	10.74%
Legacy Housing Competitors	-4.74%	-1.52%	0.40%

Analyst Recommendations

This is a summary of recent ratings for Legacy Housing and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Housing	0	1	1	0	2.50
Legacy Housing Competitors	281	1020	1296	99	2.45

Legacy Housing presently has a consensus price target of $27.50, indicating a potential upside of 19.05%. As a group, “REAL ESTATE OPS” companies have a potential upside of 14.94%. Given Legacy Housing’s stronger consensus rating and higher probable upside, analysts plainly believe Legacy Housing is more favorable than its rivals.

Earnings & Valuation

This table compares Legacy Housing and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Legacy Housing	$184.19 million	$61.64 million	10.09
Legacy Housing Competitors	$3.49 billion	$127.83 million	14.42

Legacy Housing’s rivals have higher revenue and earnings than Legacy Housing. Legacy Housing is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Legacy Housing has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Legacy Housing’s rivals have a beta of 0.88, meaning that their average stock price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

89.4% of Legacy Housing shares are owned by institutional investors. Comparatively, 58.4% of shares of all “REAL ESTATE OPS” companies are owned by institutional investors. 30.6% of Legacy Housing shares are owned by company insiders. Comparatively, 23.3% of shares of all “REAL ESTATE OPS” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Legacy Housing beats its rivals on 8 of the 13 factors compared.

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.