Kennedy-Wilson (NYSE:KW – Get Free Report) and Legacy Housing (NASDAQ:LEGH – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Valuation and Earnings
This table compares Kennedy-Wilson and Legacy Housing”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kennedy-Wilson | $531.40 million | 2.18 | -$33.00 million | ($0.67) | -12.56 |
| Legacy Housing | $184.19 million | 3.55 | $61.64 million | $2.24 | 12.24 |
Risk & Volatility
Kennedy-Wilson has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Kennedy-Wilson and Legacy Housing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kennedy-Wilson | 0 | 1 | 0 | 0 | 2.00 |
| Legacy Housing | 0 | 1 | 0 | 0 | 2.00 |
Kennedy-Wilson presently has a consensus target price of $9.00, indicating a potential upside of 6.95%. Legacy Housing has a consensus target price of $26.00, indicating a potential downside of 5.18%. Given Kennedy-Wilson’s higher possible upside, equities analysts plainly believe Kennedy-Wilson is more favorable than Legacy Housing.
Profitability
This table compares Kennedy-Wilson and Legacy Housing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kennedy-Wilson | -9.11% | 12.90% | 1.51% |
| Legacy Housing | 30.00% | 11.11% | 10.27% |
Institutional & Insider Ownership
87.7% of Kennedy-Wilson shares are owned by institutional investors. Comparatively, 89.4% of Legacy Housing shares are owned by institutional investors. 20.3% of Kennedy-Wilson shares are owned by company insiders. Comparatively, 30.6% of Legacy Housing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Legacy Housing beats Kennedy-Wilson on 8 of the 12 factors compared between the two stocks.
About Kennedy-Wilson
Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company had ownership interests in multifamily units, office space, retail and industrial space, and a hotel. It is involved in the development, redevelopment, and entitlement of real estate properties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.
About Legacy Housing
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.
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