A. O. Smith (NYSE:AOS) vs. Jewett-Cameron Trading (NASDAQ:JCTC) Critical Survey

Jewett-Cameron Trading (NASDAQ:JCTCGet Free Report) and A. O. Smith (NYSE:AOSGet Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Jewett-Cameron Trading and A. O. Smith”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jewett-Cameron Trading $41.30 million 0.25 -$4.13 million ($2.35) -1.25
A. O. Smith $3.80 billion 2.16 $546.20 million $3.60 16.80

A. O. Smith has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading is trading at a lower price-to-earnings ratio than A. O. Smith, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

26.1% of Jewett-Cameron Trading shares are held by institutional investors. Comparatively, 76.1% of A. O. Smith shares are held by institutional investors. 1.3% of Jewett-Cameron Trading shares are held by insiders. Comparatively, 0.5% of A. O. Smith shares are held by 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.

Risk and Volatility

Jewett-Cameron Trading has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, A. O. Smith has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares Jewett-Cameron Trading and A. O. Smith’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jewett-Cameron Trading -20.94% -38.35% -29.29%
A. O. Smith 13.15% 27.88% 15.21%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Jewett-Cameron Trading and A. O. Smith, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jewett-Cameron Trading 1 0 0 0 1.00
A. O. Smith 2 5 2 0 2.00

A. O. Smith has a consensus price target of $67.75, suggesting a potential upside of 12.02%. Given A. O. Smith’s stronger consensus rating and higher probable upside, analysts clearly believe A. O. Smith is more favorable than Jewett-Cameron Trading.

Summary

A. O. Smith beats Jewett-Cameron Trading on 13 of the 14 factors compared between the two stocks.

About Jewett-Cameron Trading

(Get Free Report)

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.

About A. O. Smith

(Get Free Report)

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration product; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.

Receive News & Ratings for Jewett-Cameron Trading Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Jewett-Cameron Trading and related companies with MarketBeat.com's FREE daily email newsletter.