Critical Contrast: LGI Homes (NASDAQ:LGIH) vs. Crown Crafts (NASDAQ:CRWS)

Crown Crafts (NASDAQ:CRWS – Get Free Report) and LGI Homes (NASDAQ:LGIH – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Profitability

This table compares Crown Crafts and LGI Homes’ net margins, return on equity and return on assets.

Volatility and Risk

Crown Crafts has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, LGI Homes has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Insider & Institutional Ownership

30.2% of Crown Crafts shares are owned by institutional investors. Comparatively, 84.9% of LGI Homes shares are owned by institutional investors. 12.3% of Crown Crafts shares are owned by company insiders. Comparatively, 12.6% of LGI Homes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Crown Crafts and LGI Homes”s gross revenue, earnings per share (EPS) and valuation.

LGI Homes has higher revenue and earnings than Crown Crafts. Crown Crafts is trading at a lower price-to-earnings ratio than LGI Homes, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Crown Crafts and LGI Homes, as provided by MarketBeat.

LGI Homes has a consensus target price of $72.75, indicating a potential upside of 51.12%. Given LGI Homes’ higher possible upside, analysts clearly believe LGI Homes is more favorable than Crown Crafts.

Summary

LGI Homes beats Crown Crafts on 10 of the 13 factors compared between the two stocks.

About Crown Crafts

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Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.

About LGI Homes

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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.