Headwaters (NYSE: HW) is one of 24 publicly-traded companies in the “Construction Supplies & Fixtures” industry, but how does it compare to its peers? We will compare Headwaters to similar companies based on the strength of its earnings, valuation, institutional ownership, dividends, analyst recommendations, risk and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Headwaters and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Headwaters 1 6 1 0 2.00
Headwaters Competitors 94 530 801 22 2.52

Headwaters currently has a consensus target price of $23.44, suggesting a potential downside of 3.31%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 14.81%. Given Headwaters’ peers stronger consensus rating and higher possible upside, analysts plainly believe Headwaters has less favorable growth aspects than its peers.

Insider and Institutional Ownership

86.8% of Headwaters shares are held by institutional investors. Comparatively, 85.6% of shares of all “Construction Supplies & Fixtures” companies are held by institutional investors. 6.4% of Headwaters shares are held by insiders. Comparatively, 6.1% 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 stock will outperform the market over the long term.

Risk & Volatility

Headwaters has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Headwaters’ peers have a beta of 1.46, indicating that their average stock price is 46% more volatile than the S&P 500.

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 -25.00% 907.43% 5.84%

Valuation and 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 $2.61 billion $332.51 million 27.56

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 7 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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