Legacy Housing (LEGH) vs. Its Rivals Financial Review

Legacy Housing (NASDAQ:LEGH) is one of 150 public companies in the “Household Durables” industry, but how does it weigh in compared to its peers? We will compare Legacy Housing to similar companies based on the strength of its earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Legacy Housing and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Housing	0	2	1	0	2.33
Legacy Housing Competitors	1819	7455	8180	317	2.39

Legacy Housing currently has a consensus target price of $27.00, suggesting a potential downside of 4.85%. As a group, “Household Durables” companies have a potential upside of 44.84%. Given Legacy Housing’s peers stronger consensus rating and higher probable upside, analysts clearly believe Legacy Housing has less favorable growth aspects than its peers.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Legacy Housing	$164.57 million	$41.81 million	10.63
Legacy Housing Competitors	$5.27 billion	$310.98 million	8.81

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Legacy Housing	30.06%	11.34%	10.35%
Legacy Housing Competitors	-2.55%	-17.08%	1.25%

Insider and Institutional Ownership

89.3% of Legacy Housing shares are held by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are held by institutional investors. 12.7% of Legacy Housing shares are held by company insiders. Comparatively, 18.2% of shares of all “Household Durables” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Legacy Housing has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Legacy Housing’s peers have a beta of 1.77, suggesting that their average stock price is 77% more volatile than the S&P 500.

Summary

Legacy Housing peers beat Legacy Housing on 8 of the 13 factors compared.

Legacy Housing Company Profile

Legacy Housing Corporation manufactures and sells affordable manufactured homes. Its product offerings include single-section and multi-section homes designed for residential use, as well as park-model homes. The company sells homes through a network that includes independent retailers and manufactured-home community operators, and it also works with developers on housing projects. Legacy’s operations are based in Texas, and its homes serve customers in multiple U.S. markets. Founded in 2005, Legacy Housing is headquartered in Bedford, Texas.