Analyzing Ferguson (OTCMKTS:FERGY) and Core & Main (NYSE:CNM)

Core & Main (NYSE:CNM) and Ferguson (OTCMKTS:FERGY) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

94.2% of Core & Main shares are owned by institutional investors. Comparatively, 0.2% of Ferguson shares are owned by institutional investors. 1.5% of Core & Main shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Core & Main and Ferguson, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	5	7	0	2.58
Ferguson	0	0	0	0	0.00

Core & Main presently has a consensus target price of $56.70, suggesting a potential upside of 27.56%. Given Core & Main’s stronger consensus rating and higher probable upside, equities analysts plainly believe Core & Main is more favorable than Ferguson.

Earnings and Valuation

This table compares Core & Main and Ferguson”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core & Main	$7.65 billion	1.12	$441.00 million	$2.36	18.83
Ferguson	$27.54 billion	9.76	$961.00 million	$0.65	183.83

Ferguson has higher revenue and earnings than Core & Main. Core & Main is trading at a lower price-to-earnings ratio than Ferguson, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Core & Main and Ferguson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.87%	26.17%	8.58%
Ferguson	N/A	N/A	N/A

Volatility & Risk

Core & Main has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Ferguson has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Summary

Core & Main beats Ferguson on 9 of the 14 factors compared between the two stocks.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.

About Ferguson

Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada, and Central Europe. It offers plumbing and heating solutions to customers in the residential, municipal, civil and industrial markets, and commercial sectors for repair, maintenance, and improvement (RMI), as well as new construction markets. The company also distributes pipes, valves, fittings, hydrants, meters, and related water management products, as well as offers related services, such as water line tapping and pipe fusion services. In addition, it distributes heating, ventilation, air conditioning, refrigeration equipment, and parts and supplies to specialist contractors in the residential and commercial markets for repair and replacement; and PVF products to industrial customers. Further, the company fabricates and supplies fire protection systems and bespoke fabrication services to commercial contractors for new construction and renovation projects, as well as offers products, services, and solutions to enable maintenance of facilities across various RMI markets. Additionally, it offers supply chain management solutions for PVF; and industrial maintenance, repair, and operations specializing in delivering automation, instrumentation, engineered products, and turn-key solutions. The company also sells its home improvement products directly to consumers, as well as through a network of online stores. In addition, it operates its B2B business primarily under the Ferguson brand; and B2C business under the Build.com brand. Further, the company provides products and services for maintenance of multi-family properties, government agencies, hospitality, education, healthcare, and other facilities. It operates a network of 2,194 branches and 19 distribution centers. Ferguson plc was founded in 1887 and is headquartered in Wokingham, the United Kingdom.