Head-To-Head Survey: Harbor Custom Development (NASDAQ:HCDI) & LGI Homes (NASDAQ:LGIH)

LGI Homes (NASDAQ:LGIH) and Harbor Custom Development (NASDAQ:HCDI) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Institutional & Insider Ownership

89.9% of LGI Homes shares are owned by institutional investors. 12.0% of LGI Homes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares LGI Homes and Harbor Custom Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LGI Homes 10.50% 25.02% 12.78%
Harbor Custom Development N/A N/A N/A

Earnings & Valuation

This table compares LGI Homes and Harbor Custom Development’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LGI Homes $1.84 billion 1.53 $178.61 million $7.02 15.98
Harbor Custom Development N/A N/A N/A N/A N/A

LGI Homes has higher revenue and earnings than Harbor Custom Development.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LGI Homes and Harbor Custom Development, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LGI Homes 0 4 1 0 2.20
Harbor Custom Development 0 0 0 0 N/A

LGI Homes presently has a consensus price target of $103.60, suggesting a potential downside of 7.66%. Given LGI Homes’ higher possible upside, analysts clearly believe LGI Homes is more favorable than Harbor Custom Development.

Summary

LGI Homes beats Harbor Custom Development on 8 of the 8 factors compared between the two stocks.

About LGI Homes

LGI Homes, Inc. engages in the design, construction, and sale of new homes in Texas, Arizona, Florida, Georgia, New Mexico, North Carolina, South Carolina, Colorado, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, and Nevada. It offers entry-level homes, such as detached homes and townhomes, and move-up homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. As of December 31, 2018, it owned 83 communities under the LGI Homes brand name; and 5 under the Terrata Homes brand name. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

About Harbor Custom Development

Harbor Custom Development, Inc. engages in the real estate development business in Western Washington's Puget Sound region. The company undertakes projects, such as residential lots, home communities, and single family and multi-family properties. It is involved in the land development cycle activities, including land acquisition, entitlements, construction of project infrastructure, home building, marketing, sales, and management of various residential projects. The company was formerly known as Harbor Custom Homes, Inc. and changed its name to Harbor Custom Development, Inc. in August 2019. Harbor Custom Development, Inc. was founded in 2014 and is headquartered in Gig Harbor, Washington.

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