Critical Review: LGI Homes (NASDAQ:LGIH) versus Vistry Group (OTCMKTS:BVHMF)

Vistry Group (OTCMKTS:BVHMF) and LGI Homes (NASDAQ:LGIH) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Vistry Group and LGI Homes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistry Group	1	1	2	0	2.25
LGI Homes	2	2	2	0	2.00

LGI Homes has a consensus target price of $72.75, indicating a potential upside of 18.37%. Given LGI Homes’ higher possible upside, analysts clearly believe LGI Homes is more favorable than Vistry Group.

Insider and Institutional Ownership

54.2% of Vistry Group shares are owned by institutional investors. Comparatively, 84.9% of LGI Homes shares are owned by institutional investors. 12.6% of LGI Homes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Vistry Group and LGI Homes”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vistry Group	N/A	N/A	N/A	N/A	N/A
LGI Homes	$1.67 billion	0.85	$72.55 million	$3.05	20.15

LGI Homes has higher revenue and earnings than Vistry Group.

Profitability

This table compares Vistry Group and LGI Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistry Group	N/A	N/A	N/A
LGI Homes	4.22%	3.80%	1.98%

Summary

LGI Homes beats Vistry Group on 7 of the 8 factors compared between the two stocks.

About Vistry Group

Vistry Group PLC, together with its subsidiaries, operates as a builder of homes in the United Kingdom. The company offers two-bed to four and five-bed family homes. It owns a land bank of 40,218 plots. The company was formerly known as Bovis Homes Group PLC and changed its name to Vistry Group PLC in January 2020. Vistry Group PLC was founded in 1885 and is headquartered in West Malling, the United Kingdom.

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.