Jewett-Cameron Trading (NASDAQ:JCTCF) and Lumber Liquidators (NYSE:LL) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Volatility and Risk

Jewett-Cameron Trading has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Lumber Liquidators has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Jewett-Cameron Trading and Lumber Liquidators, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jewett-Cameron Trading 0 0 0 0 N/A
Lumber Liquidators 0 12 2 0 2.14

Lumber Liquidators has a consensus target price of $16.89, indicating a potential upside of 44.60%. Given Lumber Liquidators’ higher probable upside, analysts plainly believe Lumber Liquidators is more favorable than Jewett-Cameron Trading.

Earnings & Valuation

This table compares Jewett-Cameron Trading and Lumber Liquidators’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jewett-Cameron Trading $47.70 million 0.78 $2.72 million N/A N/A
Lumber Liquidators $1.03 billion 0.32 -$37.82 million ($1.33) -8.78

Jewett-Cameron Trading has higher earnings, but lower revenue than Lumber Liquidators.

Profitability

This table compares Jewett-Cameron Trading and Lumber Liquidators’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jewett-Cameron Trading 5.48% 14.32% 12.77%
Lumber Liquidators 0.51% 6.14% 2.85%

Institutional & Insider Ownership

22.3% of Jewett-Cameron Trading shares are owned by institutional investors. Comparatively, 76.1% of Lumber Liquidators shares are owned by institutional investors. 43.9% of Jewett-Cameron Trading shares are owned by insiders. Comparatively, 1.9% of Lumber Liquidators shares are owned by 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

Jewett-Cameron Trading beats Lumber Liquidators on 7 of the 12 factors compared between the two stocks.

About Jewett-Cameron Trading

Jewett-Cameron Trading Company Ltd., through its subsidiaries, manufactures and distributes specialty metal products; and distributes wood products to home centers and other retailers primarily in the United States. The company operates through four segments: Industrial Wood Products; Lawn, Garden, Pet and Other; Seed Processing and Sales; and Industrial Tools and Clamps. The Industrial Wood Products segment processes and distributes industrial wood products. It offers treated plywood to boat manufacturers and the transportation industry. The Lawn, Garden, Pet and Other segment is involved in the wholesale of wood products, such as fencing and landscape timbers; and manufacture and distribution of specialty metal products comprising dog kennels, proprietary gate support systems, perimeter fencing, and greenhouses. The Seed Processing and Sales segment processes and distributes agricultural seeds to distributors. This segment is also involved in cleaning seeds. The Industrial Tools and Clamps segment imports and distributes pneumatic air tools, industrial clamps, saw blades, digital calipers, and laser guides to retailers. Jewett-Cameron Trading Company Ltd. was founded in 1953 and is based in North Plains, Oregon.

About Lumber Liquidators

Lumber Liquidators Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories. The company offers hardwood species, engineered hardwood, laminates, resilient vinyl flooring, and wood-look ceramic; renewable flooring, and bamboo and cork products; and a selection of flooring enhancements and accessories, including moldings, noise-reducing underlay, adhesives, and flooring tools under the Bellawood and Morning Star Bamboo brands. It also provides in-home delivery and installation services. The company primarily serves homeowners, or to contractors on behalf of homeowners. As of February 27, 2018, it operated approximately 390 stores in North America. The company also offers its products through its Website, catalogs, and call center. Lumber Liquidators Holdings, Inc. was founded in 1994 and is headquartered in Toano, Virginia.

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