Patrick Industries (NASDAQ: PATK) and PGT (NYSE:PGTI) are both small-cap construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

89.3% of Patrick Industries shares are owned by institutional investors. Comparatively, 92.4% of PGT shares are owned by institutional investors. 5.2% of Patrick Industries shares are owned by company insiders. Comparatively, 6.1% of PGT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Patrick Industries and PGT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Patrick Industries $1.22 billion 1.36 $55.57 million $4.37 22.60
PGT $458.55 million 1.77 $23.74 million $0.46 35.44

Patrick Industries has higher revenue and earnings than PGT. Patrick Industries is trading at a lower price-to-earnings ratio than PGT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Patrick Industries and PGT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patrick Industries 0 1 2 0 2.67
PGT 0 2 5 0 2.71

Patrick Industries currently has a consensus target price of $53.78, indicating a potential downside of 45.54%. PGT has a consensus target price of $16.67, indicating a potential upside of 2.25%. Given PGT’s stronger consensus rating and higher possible upside, analysts plainly believe PGT is more favorable than Patrick Industries.

Volatility & Risk

Patrick Industries has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, PGT has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Profitability

This table compares Patrick Industries and PGT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patrick Industries 4.73% 24.60% 11.00%
PGT 4.87% 19.02% 6.02%

Summary

PGT beats Patrick Industries on 9 of the 14 factors compared between the two stocks.

Patrick Industries Company Profile

Patrick Industries, Inc. is a manufacturer of component products and distributor of building products and materials for the recreational vehicle (RV) and manufactured housing (MH) industrial markets for customers throughout the United States and Canada. In addition, it is a supplier to certain other industrial markets, such as kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets. The Company’s segments include Manufacturing and Distribution. It manufactures a range of products, which include decorative vinyl and paper laminated panels, solid surface, granite and quartz countertops, fabricated aluminum products, wrapped vinyl, paper and hardwood profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass and plastic component products including front and rear caps and marine helms, interior passage doors, RV painting, and slotwall panels and components, among others.

PGT Company Profile

PGT Innovations, Inc., formerly PGT, Inc., is a manufacturer of impact-resistant windows and doors. The Company’s brands include CGI, PGT Windows + Doors and WinDoor. CGI serves residential and commercial markets in both new and existing construction. CGI manufacturing and delivery facilities are based in Miami, Florida. PGT Custom Windows + Doors is a manufacturer and supplier of residential impact-resistant glass products. The Company’s manufacturing, glass plant, and delivery facilities are located in North Venice, Florida. WinDoor serves five-star resorts, luxury high-rise condominiums and mansions along the United States coastline. WinDoor’s aluminum and vinyl products come in an array of expansive sizes, custom colors, and configurations. WinDoor manufacturing and delivery facilities are based in Orlando, Florida.

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