Legacy Housing Corporation (LEGH) vs LGI Homes, Inc. (LGIH)

Legacy Housing Corporation and LGI Homes, Inc. are both Residential Construction companies. LGI Homes, Inc. is the larger, with a market value of $1.1B against $691.6M — 1.6× the size. Legacy Housing Corporation trades at the lower P/E: 13.6× against 17.5×. Legacy Housing Corporation grew revenue faster over the last twelve months: −2.62% against −17.0%. Legacy Housing Corporation has the higher net margin (28.6% vs 3.89%) and the higher return on invested capital (6.90% vs 1.19%). Across the 22 metrics below, Legacy Housing Corporation leads on 16 and LGI Homes, Inc. on 6.

Valuation

Metric LEGH LGIH Residential Construction median
P/E 13.63 17.54 13.51
P/S 3.88 0.68 1.02
P/B 1.24 0.54 1.17
Price to free cash flow 17.57 6.30 16.79
EV/EBITDA 11.13 36.05 10.48
EV/Sales 3.73 1.57 1.31
Earnings yield 7.34% 5.70% 7.37%
Free cash flow yield 5.69% 15.87% 5.73%

Profitability

Metric LEGH LGIH Residential Construction median
Gross margin 48.75% 19.50% 22.30%
Operating margin 32.79% 4.08% 9.03%
Net margin 28.56% 3.89% 7.30%
Free cash flow margin 22.10% 10.82% 8.46%
Return on equity 9.53% 3.16% 9.84%
Return on assets 8.78% 1.67% 7.43%
Return on invested capital 6.90% 1.19% 6.90%

Growth

Metric LEGH LGIH Residential Construction median
Revenue growth (TTM) (2.62%) (16.95%) (7.37%)
EPS growth (last fiscal year) (29.84%) (62.41%) —
Revenue growth, 5-year CAGR (1.42%) (6.35%) 8.74%
Net income growth, 5-year CAGR 1.93% (25.86%) 8.43%

Health

Metric LEGH LGIH Residential Construction median
Debt to equity 0.00 0.74 0.20
Current ratio 3.56 17.74 3.56
Net debt to EBITDA (0.15) 18.97 0.28

Dividend

Metric LEGH LGIH Residential Construction median
Dividend yield — — 0.89%
Payout ratio 0.00 0.00 0.00

Size

Metric LEGH LGIH Residential Construction median
Market cap 691.61m 1.14b 4.18b

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