Reviewing Lamar Advertising (NASDAQ:LAMR) and HG (OTCMKTS:STLY)

HG (OTCMKTS:STLY) and Lamar Advertising (NASDAQ:LAMR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Institutional & Insider Ownership

1.7% of HG shares are owned by institutional investors. Comparatively, 93.8% of Lamar Advertising shares are owned by institutional investors. 36.1% of HG shares are owned by company insiders. Comparatively, 15.0% of Lamar Advertising shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares HG and Lamar Advertising’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HG	-3.70%	-1.31%	-0.92%
Lamar Advertising	16.40%	30.20%	5.53%

Earnings and Valuation

This table compares HG and Lamar Advertising”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HG	$11.11 million	1.16	-$820,000.00	($0.08)	-56.25
Lamar Advertising	$2.21 billion	4.87	$495.76 million	$3.53	29.71

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

Risk & Volatility

HG has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Lamar Advertising has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for HG and Lamar Advertising, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HG	0	0	0	0	0.00
Lamar Advertising	0	4	1	0	2.20

Lamar Advertising has a consensus target price of $134.60, suggesting a potential upside of 28.34%. Given Lamar Advertising’s stronger consensus rating and higher probable upside, analysts plainly believe Lamar Advertising is more favorable than HG.

Summary

Lamar Advertising beats HG on 13 of the 14 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 Lamar Advertising

Lamar Advertising Company operates as an outdoor advertising company in the United States and Canada. The company owns and operates billboards, logo signs, and transit advertising displays, as well as rents space for advertising on billboards, buses, shelters, benches, logo plates, and in airport terminals. Lamar Advertising Company was founded in 1902 and is headquartered in Baton Rouge, Louisiana.