Patrick Industries (NASDAQ: PATK) and American Woodmark (NASDAQ:AMWD) are both small-cap construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Insider & Institutional Ownership
92.9% of Patrick Industries shares are owned by institutional investors. Comparatively, 79.7% of American Woodmark shares are owned by institutional investors. 5.6% of Patrick Industries shares are owned by insiders. Comparatively, 1.1% of American Woodmark shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Patrick Industries has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, American Woodmark has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.
This table compares Patrick Industries and American Woodmark’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Earnings and Valuation
This table compares Patrick Industries and American Woodmark’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
Patrick Industries has higher revenue and earnings than American Woodmark. Patrick Industries is trading at a lower price-to-earnings ratio than American Woodmark, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Patrick Industries and American Woodmark, as provided by MarketBeat.com.
||Strong Buy Ratings
Patrick Industries presently has a consensus target price of $75.75, suggesting a potential upside of 27.20%. American Woodmark has a consensus target price of $142.00, suggesting a potential upside of 60.36%. Given American Woodmark’s higher possible upside, analysts clearly believe American Woodmark is more favorable than Patrick Industries.
Patrick Industries beats American Woodmark on 8 of the 14 factors compared between the two stocks.
About Patrick Industries
Patrick Industries, Inc. manufactures and distributes building products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States and Canada. Its Manufacturing segment manufactures and sells furniture, shelving, walls, countertops, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, solid surface, granite, and quartz countertop fabrication products; RV paintings; fabricated aluminum products; fiberglass and plastic components; softwoods lumber; custom cabinets; polymer-based flooring products; and electrical systems and components, including instrument and dash panels, and other products. This segment also provides wrapped vinyl, paper, and hardwood profile moldings; interior passage doors; slide-out trim and fascia products; thermoformed shower surrounds; specialty bath and closet building products; fiberglass and plastic helm systems and components; wiring and wire harnesses; aluminum fuel tanks; CNC molds and composite parts; and slotwall panels and components. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics, wiring products, electrical and plumbing products, cement siding products, raw and processed lumber, fiber reinforced polyester products, interior passage doors, roofing products, laminate and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. It also offers transportation and logistics services. Patrick Industries, Inc. offers its products through a network of manufacturing and distribution centers. The company was founded in 1959 and is based in Elkhart, Indiana.
About American Woodmark
American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and home construction markets in the United States. The company offers framed stock cabinets in approximately 514 various cabinet lines, which include 85 door designs in a range of painted and stained finishes on maple, cherry, and oak, as well as engineered fronts under the Duraform mark name. It offers cabinets in various sizes, and construction and decorative options for a range of design layouts; and turnkey installation services to its direct builder customers through a network of seven service centers. The company sells its products under the American Woodmark, Simply Woodmark, Timberlake, Shenandoah Cabinetry, Shenandoah Value Series, and Waypoint Living Spaces brand names. It markets its products primarily through home centers, builders, and independent dealers and distributors. American Woodmark Corporation was founded in 1980 and is headquartered in Winchester, Virginia.
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