Head-To-Head Survey: LGI Homes (NASDAQ:LGIH) vs. Intergroup (NASDAQ:INTG)

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

Earnings & Valuation

This table compares LGI Homes and Intergroup”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	0.63	$196.07 million	$6.63	9.12
Intergroup	$58.14 million	0.73	-$9.80 million	($3.41)	-5.76

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

Analyst Ratings

This is a breakdown of current ratings for LGI Homes and Intergroup, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGI Homes	1	2	2	0	2.20
Intergroup	0	0	0	0	0.00

LGI Homes currently has a consensus price target of $75.67, indicating a potential upside of 25.15%. Given LGI Homes’ stronger consensus rating and higher probable upside, equities analysts clearly believe LGI Homes is more favorable than Intergroup.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LGI Homes	7.63%	8.00%	4.21%
Intergroup	-12.27%	N/A	-7.02%

Risk & Volatility

LGI Homes has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Intergroup has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Institutional & Insider Ownership

84.9% of LGI Homes shares are owned by institutional investors. Comparatively, 3.4% of Intergroup shares are owned by institutional investors. 12.3% of LGI Homes shares are owned by insiders. Comparatively, 74.1% of Intergroup shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

LGI Homes beats Intergroup on 12 of the 14 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 Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.