Contrasting Quanex Building Products (NYSE:NX) and Tarkett (OTCMKTS:TKFTF)

Tarkett (OTCMKTS:TKFTF) and Quanex Building Products (NYSE:NX) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Tarkett and Quanex Building Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tarkett	N/A	N/A	N/A
Quanex Building Products	-13.85%	11.11%	4.07%

Analyst Ratings

This is a summary of current ratings and recommmendations for Tarkett and Quanex Building Products, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tarkett	0	0	0	0	0.00
Quanex Building Products	1	1	1	0	2.00

Quanex Building Products has a consensus price target of $28.00, indicating a potential upside of 34.42%. Given Quanex Building Products’ stronger consensus rating and higher possible upside, analysts plainly believe Quanex Building Products is more favorable than Tarkett.

Institutional and Insider Ownership

97.5% of Quanex Building Products shares are owned by institutional investors. 1.9% of Quanex Building Products shares are owned 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.

Earnings and Valuation

This table compares Tarkett and Quanex Building Products”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tarkett	N/A	N/A	N/A	N/A	N/A
Quanex Building Products	$1.84 billion	0.52	-$250.81 million	($5.63)	-3.70

Tarkett has higher earnings, but lower revenue than Quanex Building Products.

Summary

Quanex Building Products beats Tarkett on 8 of the 9 factors compared between the two stocks.

About Tarkett

Tarkett S.A., a flooring company, provides flooring and sports surface solutions to business and residential end users worldwide. The company provides heterogeneous and homogeneous vinyl flooring products, parquet and laminate flooring products, rubber flooring and accessories, wood floor products, resilient flooring, carpets, linoleum floor products, and synthetic grass, athletic tracks, and indoor sports flooring. It offers its products for use in healthcare, aged care, the workplace, education, stores and shops, hospitality and leisure, residential and sports segments. The company was founded in 1886 and is headquartered in Paris, France. Tarkett S.A. is a subsidiary of Societe Investissement Deconinck.

About Quanex Building Products

Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, rest of Europe, Canada, Asia, the United Kingdom, and internationally. The company operates through three segments: North American Fenestration, European Fenestration, and North American Cabinet Components. It offers flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and precision-formed metal and wood products, as well as cabinet doors and other components for original equipment manufacturers (OEMs) in the kitchen and bathroom cabinet industry. In addition, the company provides various non-fenestration components and products, including solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. It sells its products to OEMs in the building products industry through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation was founded in 1927 and is based in Houston, Texas.