LGI Homes (NASDAQ:LGIH – Get Free Report) and Mohawk Industries (NYSE:MHK – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Profitability
This table compares LGI Homes and Mohawk Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LGI Homes | 3.88% | 3.55% | 1.88% |
| Mohawk Industries | 4.15% | 7.50% | 4.60% |
Volatility and Risk
LGI Homes has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, Mohawk Industries has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
Institutional and Insider Ownership
Analyst Ratings
This is a summary of recent recommendations for LGI Homes and Mohawk Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LGI Homes | 2 | 2 | 2 | 0 | 2.00 |
| Mohawk Industries | 0 | 12 | 3 | 1 | 2.31 |
LGI Homes currently has a consensus target price of $72.75, suggesting a potential upside of 32.27%. Mohawk Industries has a consensus target price of $130.50, suggesting a potential downside of 2.36%. Given LGI Homes’ higher probable upside, equities analysts plainly believe LGI Homes is more favorable than Mohawk Industries.
Earnings & Valuation
This table compares LGI Homes and Mohawk Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LGI Homes | $1.71 billion | 0.75 | $72.55 million | $2.85 | 19.30 |
| Mohawk Industries | $11.18 billion | 0.81 | $369.90 million | $7.55 | 17.70 |
Mohawk Industries has higher revenue and earnings than LGI Homes. Mohawk Industries is trading at a lower price-to-earnings ratio than LGI Homes, indicating that it is currently the more affordable of the two stocks.
Summary
Mohawk Industries beats LGI Homes on 11 of the 15 factors compared between the two stocks.
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.
About Mohawk Industries
Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.
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