Critical Survey: Legacy Housing (NASDAQ:LEGH) versus Sun Hung Kai Properties (OTCMKTS:SUHJY)

Legacy Housing (NASDAQ:LEGH) and Sun Hung Kai Properties (OTCMKTS:SUHJY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Earnings and Valuation

This table compares Legacy Housing and Sun Hung Kai Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Housing	$184.19 million	3.63	$61.64 million	$2.24	12.50
Sun Hung Kai Properties	$10.23 billion	3.36	$2.47 billion	N/A	N/A

Sun Hung Kai Properties has higher revenue and earnings than Legacy Housing.

Insider and Institutional Ownership

89.4% of Legacy Housing shares are owned by institutional investors. 30.6% of Legacy Housing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Legacy Housing and Sun Hung Kai Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Housing	0	1	0	0	2.00
Sun Hung Kai Properties	0	0	0	0	0.00

Legacy Housing currently has a consensus price target of $26.00, suggesting a potential downside of 7.18%. Given Legacy Housing’s stronger consensus rating and higher probable upside, analysts clearly believe Legacy Housing is more favorable than Sun Hung Kai Properties.

Volatility and Risk

Legacy Housing has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Sun Hung Kai Properties has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Profitability

This table compares Legacy Housing and Sun Hung Kai Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Housing	30.00%	11.11%	10.27%
Sun Hung Kai Properties	N/A	N/A	N/A

Summary

Legacy Housing beats Sun Hung Kai Properties on 9 of the 11 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 Sun Hung Kai Properties

Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, and internationally. It develops, sells, and leases properties, including residential estates, offices, shopping malls, industrial offices, and hotels and serviced suites. The company also provides property management services; construction-related services, including landscaping, electrical and mechanical installation, production and installation of wooden doors, and construction plant and machinery leasing; and insurance products to individuals and businesses comprising householder’s comprehensive, fire, employees’ compensation, travel, personal accident, motor vehicles, contractors’ all risks, third party liability, and property all risks. In addition, the company offers voice, multimedia, and mobile broadband services; and data center services, including infrastructure, facility management, server co-location, and other value-added services. Further, it manages car parks, tunnels, and toll roads; facilities management and value-added services; general insurance; offers transport facilities for private and the public sectors; operates an expressway; provides public bus services; and offers airport freight forwarding and aviation support services. Additionally, the company provides container handling and storage, container freight station, and other port-related services; operates department stores and supermarkets; and offers mortgage and other loan financing facilities, as well as offers asset and project management, architectural and engineering, cleaning, and secretarial services. It also engages in the club and road management business. The company was formerly known as Sun Hung Kai (Holdings) Limited and changed its name to Sun Hung Kai Properties Limited in March 1973. The company was incorporated in 1972 and is based in Wan Chai, Hong Kong.