LGI Homes (NASDAQ:LGIH – Get Free Report) and Safe and Green Development (NASDAQ:SGD – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
LGI Homes has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Safe and Green Development has a beta of 3.6, meaning that its share price is 260% more volatile than the S&P 500.
Insider & Institutional Ownership
84.9% of LGI Homes shares are owned by institutional investors. Comparatively, 2.6% of Safe and Green Development shares are owned by institutional investors. 12.3% of LGI Homes shares are owned by insiders. Comparatively, 14.3% of Safe and Green Development shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LGI Homes | 2 | 2 | 2 | 0 | 2.00 |
| Safe and Green Development | 1 | 0 | 0 | 0 | 1.00 |
LGI Homes currently has a consensus target price of $75.67, suggesting a potential upside of 59.63%. Given LGI Homes’ stronger consensus rating and higher possible upside, equities research analysts plainly believe LGI Homes is more favorable than Safe and Green Development.
Profitability
This table compares LGI Homes and Safe and Green Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LGI Homes | 7.63% | 8.00% | 4.21% |
| Safe and Green Development | -766.20% | -741.44% | -60.41% |
Earnings and Valuation
This table compares LGI Homes and Safe and Green Development”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LGI Homes | $2.20 billion | 0.50 | $196.07 million | $6.63 | 7.15 |
| Safe and Green Development | $1.54 million | 4.05 | -$8.91 million | N/A | N/A |
LGI Homes has higher revenue and earnings than Safe and Green Development.
Summary
LGI Homes beats Safe and Green Development on 9 of the 12 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 Safe and Green Development
Safe and Green Development Corporation operates as a real estate development company. It focuses on building single and multifamily projects. The company was formerly known as SGB Development Corp. and changed its name to Safe and Green Development Corporation in December 2022. The company was incorporated in 2021 and is based in Miami, Florida. Safe and Green Development Corporation is a subsidiary of Safe & Green Holdings Corp.
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