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

Institutional & Insider Ownership

90.0% of LGI Homes shares are held by institutional investors. Comparatively, 6.4% of Comstock Holding Companies shares are held by institutional investors. 13.6% of LGI Homes shares are held by company insiders. Comparatively, 49.4% of Comstock Holding Companies shares are held 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.

Risk and Volatility

LGI Homes has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Comstock Holding Companies has a beta of -1.09, suggesting that its share price is 209% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LGI Homes and Comstock Holding Companies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LGI Homes 0 2 2 0 2.50
Comstock Holding Companies 0 0 0 0 N/A

LGI Homes currently has a consensus price target of $61.25, suggesting a potential upside of 6.10%. Given LGI Homes’ higher probable upside, analysts clearly believe LGI Homes is more favorable than Comstock Holding Companies.

Valuation and Earnings

This table compares LGI Homes and Comstock Holding Companies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LGI Homes $1.26 billion 1.04 $113.30 million $4.73 12.21
Comstock Holding Companies $45.43 million 0.22 -$5.02 million N/A N/A

LGI Homes has higher revenue and earnings than Comstock Holding Companies.

Profitability

This table compares LGI Homes and Comstock Holding Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LGI Homes 9.38% 27.68% 12.25%
Comstock Holding Companies -11.60% -173.73% -8.40%

Summary

LGI Homes beats Comstock Holding Companies on 10 of the 11 factors compared between the two stocks.

LGI Homes Company Profile

LGI Homes, Inc. engages in the design, construction, and sale of new homes in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington, Tennessee, and Minnesota markets. It offers entry-level homes, such as detached and townhomes, as well as move-up homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. As of December 31, 2017, it owned 72 communities under the LGI Homes brand; and 6 under the Terrata Homes brand. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

Comstock Holding Companies Company Profile

Comstock Holding Companies, Inc. operates as a real estate development and construction services company primarily in the Washington, D.C. metropolitan area. It operates through three segments: Homebuilding, Multi-Family, and Real Estate Services. The company builds multi-family units, single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums, and mixed-use developments. It also provides real estate management services, including strategic planning, land development, entitlement, property management, sales and marketing, workout and turnaround strategies, financing, and general construction services; and construction management, general contracting, and other real estate related services to other property owners. The company was formerly known as Comstock Homebuilding Companies, Inc. and changed its name to Comstock Holding Companies, Inc. in June 2012. Comstock Holding Companies, Inc. was founded in 1985 and is headquartered in Reston, Virginia.

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