Critical Contrast: Traeger (NYSE:COOK) & A. O. Smith (NYSE:AOS)

Traeger (NYSE:COOK) and A. O. Smith (NYSE:AOS) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Traeger and A. O. Smith’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Traeger N/A N/A N/A
A. O. Smith 13.69% 24.38% 14.30%

Insider & Institutional Ownership

74.1% of A. O. Smith shares are owned by institutional investors. 1.0% of A. O. Smith shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Traeger and A. O. Smith, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Traeger 0 1 9 0 2.90
A. O. Smith 1 3 2 0 2.17

Traeger presently has a consensus price target of $31.33, indicating a potential upside of 37.79%. A. O. Smith has a consensus price target of $63.40, indicating a potential downside of 1.03%. Given Traeger’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Traeger is more favorable than A. O. Smith.

Valuation & Earnings

This table compares Traeger and A. O. Smith’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Traeger $545.77 million 4.90 N/A N/A N/A
A. O. Smith $2.90 billion 3.52 $344.90 million $2.16 29.66

A. O. Smith has higher revenue and earnings than Traeger.

Summary

A. O. Smith beats Traeger on 6 of the 10 factors compared between the two stocks.

Traeger Company Profile

Traeger Inc. provides wood pellet grill. The company’s pellet grills utilize wood-fired convection power, owners can grill, smoke, bake, roast, braise and barbecue meals on one cooking system. Traeger Inc. is headquartered in Salt Lake City.

A. O. Smith Company Profile

A. O. Smith Corp. manufactures residential and commercial gas and electric water heaters, boilers, tanks and water treatment products. It operates through the following two segments: North America and Rest of World. The North America segment manufactures and markets comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks. The Rest of World segment comprises of China, Europe, and India; and manufactures and markets water treatment products. The company was founded by Charles Jeremiah Smith in 1874 and is headquartered in Milwaukee, WI.

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