LGI Homes (NASDAQ:LGIH – Get Free Report) and SharkNinja (NYSE:SN – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Risk and Volatility
LGI Homes has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, SharkNinja has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Profitability
This table compares LGI Homes and SharkNinja’s 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% |
| SharkNinja | 10.06% | 27.79% | 14.19% |
Insider & Institutional Ownership
84.9% of LGI Homes shares are held by institutional investors. Comparatively, 34.8% of SharkNinja shares are held by institutional investors. 12.6% of LGI Homes shares are held by insiders. Comparatively, 40.8% of SharkNinja shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for LGI Homes and SharkNinja, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LGI Homes | 2 | 1 | 2 | 0 | 2.00 |
| SharkNinja | 0 | 0 | 12 | 0 | 3.00 |
LGI Homes presently has a consensus target price of $68.00, indicating a potential upside of 53.26%. SharkNinja has a consensus target price of $194.84, indicating a potential downside of 6.47%. Given LGI Homes’ higher probable upside, equities analysts clearly believe LGI Homes is more favorable than SharkNinja.
Valuation & Earnings
This table compares LGI Homes and SharkNinja”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LGI Homes | $1.71 billion | 0.60 | $72.55 million | $2.85 | 15.57 |
| SharkNinja | $6.40 billion | 4.59 | $701.37 million | $4.90 | 42.52 |
SharkNinja has higher revenue and earnings than LGI Homes. LGI Homes is trading at a lower price-to-earnings ratio than SharkNinja, indicating that it is currently the more affordable of the two stocks.
Summary
SharkNinja beats LGI Homes on 11 of the 14 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 SharkNinja
SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.
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