Contrasting Everus (NYSE:ECG) & LGI Homes (NASDAQ:LGIH)

Everus (NYSE:ECG) and LGI Homes (NASDAQ:LGIH) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everus	N/A	N/A	N/A
LGI Homes	8.75%	10.32%	5.46%

Institutional & Insider Ownership

84.9% of LGI Homes shares are owned by institutional investors. 12.4% of LGI Homes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Everus and LGI Homes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everus	0	2	2	0	2.50
LGI Homes	1	2	1	0	2.00

Everus currently has a consensus target price of $67.33, indicating a potential upside of 68.12%. LGI Homes has a consensus target price of $118.33, indicating a potential upside of 57.59%. Given Everus’ stronger consensus rating and higher possible upside, research analysts clearly believe Everus is more favorable than LGI Homes.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everus	$2.85 billion	0.72	$143.42 million	N/A	N/A
LGI Homes	$2.20 billion	0.80	$199.23 million	$8.30	9.05

LGI Homes has lower revenue, but higher earnings than Everus.

Summary

LGI Homes beats Everus on 7 of the 11 factors compared between the two stocks.

About Everus

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.

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.