Reviewing LGI Homes (NASDAQ:LGIH) and Hongkong Land (OTCMKTS:HNGKY)

Hongkong Land (OTCMKTS:HNGKY) and LGI Homes (NASDAQ:LGIH) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Earnings & Valuation

This table compares Hongkong Land and LGI Homes”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hongkong Land	$2.00 billion	9.25	-$1.38 billion	N/A	N/A
LGI Homes	$2.20 billion	0.64	$196.07 million	$4.53	13.43

LGI Homes has higher revenue and earnings than Hongkong Land.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hongkong Land	N/A	N/A	N/A
LGI Homes	5.93%	5.50%	2.88%

Risk & Volatility

Hongkong Land has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, LGI Homes has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Institutional and Insider Ownership

84.9% of LGI Homes shares are owned by institutional investors. 12.3% of LGI Homes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Hongkong Land and LGI Homes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hongkong Land	0	0	1	0	3.00
LGI Homes	2	1	3	0	2.17

LGI Homes has a consensus target price of $76.70, suggesting a potential upside of 26.09%. Given LGI Homes’ higher probable upside, analysts clearly believe LGI Homes is more favorable than Hongkong Land.

Summary

LGI Homes beats Hongkong Land on 10 of the 12 factors compared between the two stocks.

About Hongkong Land

Hongkong Land Holdings Limited, together with its subsidiaries, engages in the investment, development, and management of properties in Hong Kong, Macau, Mainland China, Southeast Asia, and internationally. The company operates in two segments, Investment Properties and Development Properties. It owns and manages approximately 850,000 square meters of office and luxury retail assets primarily in Hong Kong, Singapore, Beijing, and Jakarta. The company also develops and sells residential properties. In addition, it is involved in hotel investment, finance, and project management businesses. The company was founded in 1889 and is based in Hamilton, Bermuda. Hongkong Land Holdings Limited operates as a subsidiary of Jardine Strategic Limited.

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.