Financial Analysis: Sun Communities (NYSE:SUI) versus HG (OTCMKTS:STLY)

HG (OTCMKTS:STLY) and Sun Communities (NYSE:SUI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

1.7% of HG shares are owned by institutional investors. Comparatively, 99.6% of Sun Communities shares are owned by institutional investors. 36.1% of HG shares are owned by company insiders. Comparatively, 1.9% of Sun Communities shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for HG and Sun Communities, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HG	0	0	0	0	N/A
Sun Communities	0	5	6	0	2.55

Sun Communities has a consensus target price of $137.64, indicating a potential downside of 2.68%. Given Sun Communities’ higher possible upside, analysts clearly believe Sun Communities is more favorable than HG.

Earnings and Valuation

This table compares HG and Sun Communities’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HG	$11.11 million	1.55	-$820,000.00	N/A	N/A
Sun Communities	$3.22 billion	5.48	-$201.00 million	$1.16	121.91

HG has higher earnings, but lower revenue than Sun Communities.

Profitability

This table compares HG and Sun Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HG	-3.02%	-1.05%	-0.74%
Sun Communities	3.49%	1.50%	0.66%

Risk and Volatility

HG has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Sun Communities has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Summary

Sun Communities beats HG on 9 of the 11 factors compared between the two stocks.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.

About Sun Communities

Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.