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ELA vs LEGH

ELA
Envela Corporation
NEUTRAL
Price
$18.50
Market Cap
$480.3M
Sector
Consumer Cyclical
AI Confidence
85%
LEGH
Legacy Housing Corporation
BEARISH
Price
$21.10
Market Cap
$502.4M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
ELA
33.04
LEGH
12.13
Forward P/E
ELA
52.86
LEGH
9.95
P/B Ratio
ELA
7.16
LEGH
0.95
P/S Ratio
ELA
1.99
LEGH
3.05
EV/EBITDA
ELA
24.13
LEGH
9.88

Profitability

Gross Margin
ELA
22.37%
LEGH
47.41%
Operating Margin
ELA
9.36%
LEGH
26.89%
Profit Margin
ELA
6.06%
LEGH
25.41%
ROE
ELA
24.39%
LEGH
8.18%
ROA
ELA
13.02%
LEGH
5.43%

Growth

Revenue Growth
ELA
66.6%
LEGH
-29.4%
Earnings Growth
ELA
284.5%
LEGH
-41.8%

Financial Health

Debt/Equity
ELA
0.3
LEGH
0.0
Current Ratio
ELA
3.5
LEGH
3.51
Quick Ratio
ELA
1.56
LEGH
1.19

Dividends

Dividend Yield
ELA
--
LEGH
--
Payout Ratio
ELA
0.0%
LEGH
0.0%

AI Verdict

ELA NEUTRAL

Envela Corporation (ELA) presents a stark dichotomy between explosive growth and deteriorating fundamental health. While the company exhibits hyper-growth in revenue (66.6%) and earnings (284.5%), the Piotroski F-Score of 3/9 indicates weak financial health and poor operational efficiency. The stock is currently trading at a premium ($18.50) relative to both its Graham Number ($5.70) and Intrinsic Value ($16.52), with a concerning Forward P/E (52.86) that exceeds its trailing P/E (33.04), suggesting a projected earnings slowdown.

Strengths
Exceptional YoY revenue growth of 66.60%
Massive earnings growth (284.50%) with consistent quarterly beats
Strong Return on Equity (ROE) of 24.39% and ROA of 13.02%
Risks
Weak Piotroski F-Score (3/9) signaling fundamental instability
Forward P/E (52.86) is significantly higher than Trailing P/E, implying decelerating earnings expectations
Severe overvaluation relative to defensive Graham Number ($5.70)
LEGH BEARISH

LEGH presents a classic 'value trap' scenario, characterized by a weak Piotroski F-Score of 3/9 and severe fundamental deterioration. While the company maintains an exceptionally clean balance sheet with zero debt and high profit margins, these are overshadowed by a collapse in growth, with revenue and earnings plummeting by approximately 30% and 42% respectively. The stock trades below its Graham Number ($29.48) but significantly above its growth-based intrinsic value ($12.18), suggesting that current valuation metrics are lagging behind the rapid decline in operational performance.

Strengths
Zero Debt/Equity ratio indicating no leverage risk
Strong liquidity with a Current Ratio of 3.51
High profitability margins (Gross 47.41%, Profit 25.41%)
Risks
Severe revenue contraction (-29.40% YoY)
Significant earnings decline (-41.80% YoY)
Consistent failure to meet earnings estimates (1/4 beats in last year)

Compare Another Pair

ELA vs LEGH: Head-to-Head Comparison

This page compares Envela Corporation (ELA) and Legacy Housing Corporation (LEGH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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