LGI Homes (NASDAQ:LGIH – Get Free Report) and St. Joe (NYSE:JOE – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Risk & Volatility
LGI Homes has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, St. Joe has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
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Valuation & Earnings
This table compares LGI Homes and St. Joe”s gross revenue, earnings per share (EPS) and valuation.
LGI Homes has higher revenue and earnings than St. Joe. LGI Homes is trading at a lower price-to-earnings ratio than St. Joe, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
84.9% of LGI Homes shares are held by institutional investors. Comparatively, 86.7% of St. Joe shares are held by institutional investors. 12.3% of LGI Homes shares are held by insiders. Comparatively, 0.3% of St. Joe shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares LGI Homes and St. Joe’s net margins, return on equity and return on assets.
Analyst Ratings
This is a summary of current recommendations and price targets for LGI Homes and St. Joe, as provided by MarketBeat.
LGI Homes currently has a consensus target price of $75.67, indicating a potential upside of 25.15%. Given LGI Homes’ stronger consensus rating and higher possible upside, equities research analysts plainly believe LGI Homes is more favorable than St. Joe.
Summary
LGI Homes beats St. Joe on 8 of the 14 factors compared between the two stocks.
About LGI Homes
(Get Free Report)
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 St. Joe
(Get Free Report)
The St. Joe Company, together with its subsidiaries, operates as a real estate development, asset management, and operating company in Northwest Florida. It operates through three segments: Residential, Hospitality, and Commercial. The Residential segment engages in the development of communities into homesites for sale to homebuilders and on a limited basis to retail customers. This segment primarily sells developed homesites, completed homes, parcels of entitled or undeveloped land or homesites, and a homesite residual on homebuilder, as well as offers title insurance and marketing services. The Hospitality segment owns and operates a private membership club, golf courses, beach clubs, retail outlets, marinas, and other entertainment assets. This segment also engages in the hotel, food and beverage, and gulf-front vacation rental operations, as well as provides management services. The Commercial segment engages in leasing of commercial property, multi-family, a senior living community, and other assets. This segment is also involved in the planning, development, entitlement, management, and sale of commercial and rural land holdings for retail, office, hotel, senior living, multi-family, self-storage, and industrial uses; and grows and sells pulpwood, sawtimber, and other forest products. The company was incorporated in 1936 and is based in Panama City Beach, Florida.