Financial Comparison: Cavco Industries (CVCO) versus Legacy Housing (LEGH)

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

Earnings & Valuation

This table compares Legacy Housing and Cavco Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Legacy Housing $128.73 million 2.51 $26.34 million N/A N/A
Cavco Industries $871.23 million 1.44 $61.50 million N/A N/A

Cavco Industries has higher revenue and earnings than Legacy Housing.

Insider and Institutional Ownership

0.9% of Legacy Housing shares are held by institutional investors. Comparatively, 97.1% of Cavco Industries shares are held by institutional investors. 8.5% of Cavco Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Legacy Housing and Cavco Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Legacy Housing N/A N/A N/A
Cavco Industries 7.34% 14.62% 10.11%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Legacy Housing and Cavco Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legacy Housing 0 0 2 0 3.00
Cavco Industries 0 1 0 0 2.00

Legacy Housing currently has a consensus target price of $17.00, indicating a potential upside of 26.39%. Cavco Industries has a consensus target price of $128.00, indicating a potential downside of 7.33%. Given Legacy Housing’s stronger consensus rating and higher probable upside, equities analysts plainly believe Legacy Housing is more favorable than Cavco Industries.

Summary

Cavco Industries beats Legacy Housing on 7 of the 11 factors compared between the two stocks.

About Legacy Housing

Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides services for the transport of mobile homes; offers wholesale financing services to dealers and mobile home parks; and provides retail financing services to consumers. The company markets its homes under the Legacy brand name through a network of 117 independent and 11 company-owned retail locations, as well as direct sales to owners of manufactured home communities in 15 states in the United States. Its customers include young and working class families, as well as persons aged 55 and older. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails manufactured homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its manufactured homes under the Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes, Friendship Homes, Chariot Eagle, and Lexington Home brands. It also builds park model RVs; vacation cabins; and systems-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces modular homes, such as single and multi-module ranch, split-level, and Cape Cod style homes, as well as two and three story homes and multi-family units primarily under the Nationwide Homes brand. Further, it provides conforming mortgages, non-conforming mortgages, and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail sales centers, as well as various independent retailers, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. As of March 31, 2018, it operated 39 retail centers in Oregon, Arizona, New Mexico, Texas, Oklahoma, and Florida, Texas. The company also distributes its homes through a network of independent distribution points in 47 states, as well as Canada and Japan; and through planned community operators and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

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