Analyzing Smith-Midland (SMID) and The Competition

Smith-Midland (NASDAQ:SMID) is one of 74 public companies in the “Construction Materials” industry, but how does it weigh in compared to its competitors? We will compare Smith-Midland to similar businesses based on the strength of its analyst recommendations, profitability, institutional ownership, valuation, earnings, dividends and risk.

Profitability

This table compares Smith-Midland and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith-Midland	8.59%	14.06%	8.75%
Smith-Midland Competitors	4.55%	7.96%	4.97%

Risk and Volatility

Smith-Midland has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Smith-Midland’s competitors have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

49.9% of Smith-Midland shares are held by institutional investors. Comparatively, 46.5% of shares of all “Construction Materials” companies are held by institutional investors. 3.8% of Smith-Midland shares are held by insiders. Comparatively, 10.0% of shares of all “Construction Materials” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Smith-Midland and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Smith-Midland	$93.40 million	$12.51 million	18.38
Smith-Midland Competitors	$6.82 billion	$651.37 million	27.28

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Smith-Midland and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith-Midland	0	1	0	0	2.00
Smith-Midland Competitors	407	2067	2844	86	2.48

As a group, “Construction Materials” companies have a potential upside of 414.71%. Given Smith-Midland’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Smith-Midland has less favorable growth aspects than its competitors.

Summary

Smith-Midland competitors beat Smith-Midland on 8 of the 13 factors compared.

Smith-Midland Company Profile

Smith-Midland Corporation invents, develops, manufactures, markets, leases, licenses, sells, and installs precast concrete products and systems in the United States. It offers SlenderWall lightweight construction panel, lightweight exterior cladding used for the exterior walls of buildings; Sierra Wall that provides sound and sight barrier for use alongside highways around residential, industrial, and commercial properties; J-J Hooks highway safety barriers, used on roadways to separate lanes of traffic in construction work zone or traffic control purposes; Easi-Set precast building and Easi-Span expandable precast buildings, used in housing communications operations, traffic control systems, and mechanical and electrical stations; Easi-Set utility, vaults for house equipment, such as cable, telephone, or traffic signal equipment, and for underground storage, as well as custom-built utility vaults for special needs; SoftSound soundwall panels, it absorb highway noise; Beach Prisms erosion control modules for seawalls and jetties; and H2Out secondary drainage systems for panelized exterior cladding. It licenses its proprietary products in the United States, Canada, New Zealand, Australia, Belgium, Mexico, and Trinidad. The company markets its products through in-house sales force and independent sales representatives to contractors performing public and private construction contracts, such as construction of commercial buildings, public and private roads and highways, airports, and municipal utilities; and federal, state, and local transportation authorities. It serves its products to construction, highway, utilities, and farming industries. Smith-Midland Corporation was founded in 1960 and is based in Midland, Virginia.