FRP (NASDAQ:FRPH) versus Legacy Housing (NASDAQ:LEGH) Financial Contrast

Legacy Housing (NASDAQ:LEGH) and FRP (NASDAQ:FRPH) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Insider & Institutional Ownership

89.4% of Legacy Housing shares are owned by institutional investors. Comparatively, 45.4% of FRP shares are owned by institutional investors. 30.1% of Legacy Housing shares are owned by insiders. Comparatively, 24.0% of FRP shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Legacy Housing and FRP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Housing	26.01%	8.08%	7.44%
FRP	2.16%	0.29%	0.18%

Valuation & Earnings

This table compares Legacy Housing and FRP”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Housing	$164.57 million	3.59	$41.81 million	$1.78	13.95
FRP	$42.85 million	10.65	$3.33 million	$0.04	595.25

Legacy Housing has higher revenue and earnings than FRP. Legacy Housing is trading at a lower price-to-earnings ratio than FRP, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Legacy Housing and FRP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Housing	0	4	0	0	2.00
FRP	1	0	0	0	1.00

Legacy Housing currently has a consensus target price of $21.00, suggesting a potential downside of 15.42%. Given Legacy Housing’s stronger consensus rating and higher possible upside, analysts clearly believe Legacy Housing is more favorable than FRP.

Risk and Volatility

Legacy Housing has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, FRP has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Summary

Legacy Housing beats FRP on 11 of the 13 factors compared between the two stocks.

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.

About FRP

FRP Holdings, Inc. engages in the real estate business in the United States. It operates through four segments: Industrial and Commercial, Mining Royalty Lands, Development, and Multifamily. The Industrial and Commercial segment owns, leases, and manages commercial properties. The Mining Royalty Lands segment leases and manages mining royalties owned by the company primarily in Florida, Georgia, and Virginia. The Development segment owns and monitors the use of parcels of land that are in various stages of development; and acquires, constructs, and develops primarily for apartment, retail, warehouse, and office buildings. The Multifamily segment owns, leases, and manages buildings through joint ventures. The company was incorporated in 2014 and is based in Jacksonville, Florida.