LGI Homes (NASDAQ:LGIH) and SharkNinja (NYSE:SN) Critical Review

SharkNinja (NYSE:SN) and LGI Homes (NASDAQ:LGIH) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Earnings & Valuation

This table compares SharkNinja and LGI Homes”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SharkNinja	$6.40 billion	4.33	$701.37 million	$4.90	40.10
LGI Homes	$1.71 billion	0.58	$72.55 million	$2.85	14.90

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SharkNinja	10.06%	27.79%	14.19%
LGI Homes	3.88%	3.55%	1.88%

Insider and Institutional Ownership

34.8% of SharkNinja shares are held by institutional investors. Comparatively, 84.9% of LGI Homes shares are held by institutional investors. 40.8% of SharkNinja shares are held by company insiders. Comparatively, 12.6% of LGI Homes shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

SharkNinja has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, LGI Homes has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for SharkNinja and LGI Homes, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SharkNinja	0	0	12	0	3.00
LGI Homes	2	1	2	0	2.00

SharkNinja presently has a consensus target price of $189.92, indicating a potential downside of 3.35%. LGI Homes has a consensus target price of $68.00, indicating a potential upside of 60.11%. Given LGI Homes’ higher possible upside, analysts clearly believe LGI Homes is more favorable than SharkNinja.

Summary

SharkNinja beats LGI Homes on 11 of the 14 factors compared between the two stocks.

About SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.

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.