Financial Analysis: WESCO International (WCC) vs. Houston Wire & Cable (HWCC)
WESCO International (NYSE: WCC) and Houston Wire & Cable (NASDAQ:HWCC) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
This is a breakdown of current ratings and target prices for WESCO International and Houston Wire & Cable, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Houston Wire & Cable||0||0||2||0||3.00|
This table compares WESCO International and Houston Wire & Cable’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Houston Wire & Cable||-0.07%||2.68%||1.29%|
Earnings & Valuation
This table compares WESCO International and Houston Wire & Cable’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WESCO International||$7.68 billion||0.38||$163.46 million||$3.93||15.88|
|Houston Wire & Cable||$317.70 million||0.41||-$220,000.00||$0.15||52.33|
WESCO International has higher revenue and earnings than Houston Wire & Cable. WESCO International is trading at a lower price-to-earnings ratio than Houston Wire & Cable, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
WESCO International has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Houston Wire & Cable has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.
Institutional and Insider Ownership
65.1% of Houston Wire & Cable shares are held by institutional investors. 1.9% of WESCO International shares are held by company insiders. Comparatively, 3.9% of Houston Wire & Cable shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
WESCO International beats Houston Wire & Cable on 9 of the 14 factors compared between the two stocks.
About WESCO International
WESCO International, Inc. distributes electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturers products and construction materials in North America and internationally. The company sells general supplies, such as wiring devices, fuses, terminals, connectors, boxes, enclosures, fittings, lugs, terminations, wraps, splicing and marking equipment, tools and testers, safety, personal protection, sealants, cutting tools, adhesives, consumables, fasteners, janitorial, and other MRO supplies. It also distributes wires, cables, raceways, and metallic and non-metallic conduits; and communications and security products, including structured cabling systems, broadband products, low voltage specialty systems, specialty wire and cable products, equipment racks and cabinets, access controls, alarms, cameras, and paging and voice solutions. In addition, the company sells electrical distribution and controls comprising circuit breakers, transformers, switchboards, panel boards, metering products, and busway products; lamps, fixtures, ballasts, and lighting control products; and motor control devices, drives, relays, timers, pushbuttons, operator interfaces, switches, sensors, interconnects, and surge and power protection products. Further, it provides supply chain management and logistics services; and value-added services in the areas of construction, e-commerce, energy and sustainability, engineering, production support, safety and security, supply chain optimization, training, and working capital. The company serves industrial firms, electrical and data communications contractors, utilities, commercial organizations, institutions, and governmental entities. WESCO International, Inc. was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.
About Houston Wire & Cable
Houston Wire & Cable Company is a holding company. The Company is engaged in provision of electrical and mechanical wire and cable, hardware and related services. It operates through sales of wire and cable, hardware and related services segment in the United States market. Its cable management program includes purchasing and storing inventory for product availability. The Company offers products in categories of wire and cable, including continuous and interlocked armor cable; control and power cable; electronic wire and cable; flexible and portable cord; instrumentation and thermocouple cable; lead and high temperature cable; medium voltage cable; premise and category wire and cable; primary and secondary aluminum distribution cable, and synthetic fiber rope slings, chain, shackles, and other related hardware. The Company also offers private branded products, including its brand LifeGuard, a low smoke zero halogen (LSZH) cable. Its products are used in repair and replacement work.
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