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

Analyst Ratings

This is a summary of current ratings for Trex and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trex 0 4 1 0 2.20
Trex Competitors 59 436 748 15 2.57

Trex currently has a consensus price target of $75.20, suggesting a potential downside of 13.69%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 15.82%. Given Trex’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Trex has less favorable growth aspects than its rivals.

Volatility & Risk

Trex has a beta of 2.34, suggesting that its stock price is 134% more volatile than the S&P 500. Comparatively, Trex’s rivals have a beta of 1.46, suggesting that their average stock price is 46% more volatile than the S&P 500.

Earnings and Valuation

This table compares Trex and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Trex $504.24 million $131.61 million 33.77
Trex Competitors $2.61 billion $332.50 million 27.17

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

Profitability

This table compares Trex and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trex 15.12% 56.76% 33.15%
Trex Competitors -22.33% 906.93% 5.67%

Insider & Institutional Ownership

91.8% of Trex shares are held by institutional investors. Comparatively, 86.8% of shares of all “Construction Supplies & Fixtures” companies are held by institutional investors. 1.0% of Trex shares are held by company insiders. Comparatively, 5.6% of shares of all “Construction Supplies & Fixtures” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Trex rivals beat Trex on 8 of the 13 factors compared.

Trex Company Profile

Trex Company, Inc. is a manufacturer of wood-alternative decking and railing products. The Company’s products are marketed under the brand name Trex and are manufactured in the United States. It offers a set of outdoor living products in the decking, railing, porch, fencing, trim, steel deck framing and outdoor lighting categories. Its decking products include Trex Transcend, Trex Enhance and Trex Select. The Company’s railing products include Trex Transcend Railing, Trex Select Railing and Trex Signature aluminum railing. It offers Trex Transcend Porch Flooring and Railing System, which is an integrated system of porch components and accessories. The Company offers Trex Seclusions fencing product, which consists of structural posts, bottom rail, pickets, top rail and decorative post caps. It offers a triple-coated steel deck framing system called Trex Elevations. The Company also offers outdoor lighting systems, such as Trex DeckLighting and Trex Landscape Lighting.

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