Headwaters (NYSE: HW) is one of 25 publicly-traded companies in the “Construction Supplies & Fixtures” industry, but how does it compare to its competitors? We will compare Headwaters to similar companies based on the strength of its dividends, analyst recommendations, valuation, institutional ownership, earnings, risk and profitability.

Analyst Ratings

This is a summary of current ratings for Headwaters and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Headwaters 1 6 1 0 2.00
Headwaters Competitors 98 540 832 23 2.52

Headwaters presently has a consensus price target of $23.44, suggesting a potential downside of 3.31%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 15.71%. Given Headwaters’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Headwaters has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

86.8% of Headwaters shares are owned by institutional investors. Comparatively, 83.8% of shares of all “Construction Supplies & Fixtures” companies are owned by institutional investors. 6.4% of Headwaters shares are owned by company insiders. Comparatively, 8.5% of shares of all “Construction Supplies & Fixtures” companies are owned 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.

Profitability

This table compares Headwaters and its competitors’ 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 -23.94% 870.30% 5.72%

Valuation and Earnings

This table compares Headwaters and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Headwaters N/A N/A 43.29
Headwaters Competitors $2.53 billion $322.06 million 27.87

Headwaters’ competitors have higher revenue and earnings than Headwaters. Headwaters is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Headwaters has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Headwaters’ competitors have a beta of 1.40, suggesting that their average stock price is 40% more volatile than the S&P 500.

Summary

Headwaters competitors beat Headwaters on 8 of the 11 factors compared.

About Headwaters

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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