Head-To-Head Survey: Headwaters (HW) vs. Its Competitors

Headwaters (NYSE: HW) is one of 25 public companies in the “Construction Supplies & Fixtures” industry, but how does it compare to its peers? We will compare Headwaters to related companies based on the strength of its institutional ownership, dividends, profitability, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

86.8% of Headwaters shares are held by institutional investors. Comparatively, 83.8% of shares of all “Construction Supplies & Fixtures” companies are held by institutional investors. 6.4% of Headwaters shares are held by insiders. Comparatively, 8.5% of shares of all “Construction Supplies & Fixtures” companies are held by 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 Headwaters and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Headwaters 1.98% 5.96% 1.68%
Headwaters Competitors -23.94% 870.30% 5.72%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Headwaters and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Headwaters 1 6 1 0 2.00
Headwaters Competitors 99 544 835 23 2.52

Headwaters presently has a consensus target price of $23.44, indicating a potential downside of 3.31%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 15.01%. Given Headwaters’ peers stronger consensus rating and higher probable upside, analysts plainly believe Headwaters has less favorable growth aspects than its peers.

Volatility and Risk

Headwaters has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Headwaters’ peers have a beta of 1.40, indicating that their average share price is 40% more volatile than the S&P 500.

Valuation & Earnings

This table compares Headwaters and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Headwaters N/A N/A 43.29
Headwaters Competitors $2.53 billion $321.95 million 28.75

Headwaters’ peers have higher revenue and earnings than Headwaters. Headwaters is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Headwaters peers beat Headwaters on 8 of the 11 factors compared.

Headwaters Company Profile

Headwaters Incorporated is a building materials company operating in the building products and construction materials sectors. The Company sells building products, such as manufactured architectural stone, siding accessory products, roof products and concrete block. The Company’s operating segments include building products, construction materials and energy technology. It also markets coal combustion products (CCPs), including fly ash, which is used as a partial replacement for Portland cement in concrete. The Building Products segment is engaged in designing, manufacturing and marketing of siding accessories used in residential repair and remodeling, and new residential construction applications. The Materials segment markets fly ash in the construction materials sector. The Energy Technology segment is involved in heavy oil upgrading processes through the sale of its HCAT catalyst material. It sells catalytic materials to certain refineries engaged in heavy oil upgrading.

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