Head to Head Analysis: Core & Main (CNM) vs. Its Competitors

Core & Main (NYSE:CNM) is one of 158 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it contrast to its peers? We will compare Core & Main to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Volatility and Risk

Core & Main has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Core & Main’s peers have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.

Profitability

This table compares Core & Main and its peers’ 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%
Core & Main Competitors	0.68%	-34.57%	3.12%

Analyst Ratings

This is a breakdown of recent ratings for Core & Main and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	5	7	0	2.58
Core & Main Competitors	1409	4856	6648	217	2.43

Core & Main presently has a consensus price target of $56.70, indicating a potential upside of 24.80%. As a group, “Trading Companies & Distributors” companies have a potential upside of 7.77%. Given Core & Main’s stronger consensus rating and higher possible upside, equities analysts plainly believe Core & Main is more favorable than its peers.

Institutional & Insider Ownership

94.2% of Core & Main shares are owned by institutional investors. Comparatively, 50.9% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 1.5% of Core & Main shares are owned by insiders. Comparatively, 17.1% of shares of all “Trading Companies & Distributors” companies are owned by 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.

Valuation and Earnings

This table compares Core & Main and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Core & Main	$7.65 billion	$441.00 million	19.25
Core & Main Competitors	$6.48 billion	$363.90 million	24.15

Core & Main has higher revenue and earnings than its peers. Core & Main is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Core & Main beats its peers on 9 of the 13 factors compared.

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.