Financial Review: Active Power (OTCMKTS:PIOE) versus Legacy Housing (NASDAQ:LEGH)

Active Power (OTCMKTS:PIOE) and Legacy Housing (NASDAQ:LEGH) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Institutional and Insider Ownership

89.4% of Legacy Housing shares are held by institutional investors. 20.0% of Active Power shares are held by insiders. Comparatively, 30.1% of Legacy Housing shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Active Power and Legacy Housing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Active Power	0	0	0	0	0.00
Legacy Housing	0	4	0	0	2.00

Legacy Housing has a consensus price target of $21.00, indicating a potential downside of 13.51%. Given Legacy Housing’s stronger consensus rating and higher possible upside, analysts clearly believe Legacy Housing is more favorable than Active Power.

Valuation & Earnings

This table compares Active Power and Legacy Housing”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Active Power	N/A	N/A	N/A	N/A	N/A
Legacy Housing	$164.57 million	3.51	$41.81 million	$1.78	13.64

Legacy Housing has higher revenue and earnings than Active Power.

Profitability

This table compares Active Power and Legacy Housing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Active Power	N/A	N/A	N/A
Legacy Housing	26.01%	8.08%	7.44%

Summary

Legacy Housing beats Active Power on 8 of the 8 factors compared between the two stocks.

About Active Power

P10 Holdings, Inc. is an alternative asset management investment firm. The firm’s purpose is to create long-term value by providing risk-adjusted returns through private equity funds-of-funds, secondary funds, and co-investment funds. It focusses on long-term value creation in opportunities where it sees significant potential for sustainable profit growth. The company was founded by Joseph F. Pinkerton in 1992 and is headquartered in Dallas, TX.

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.