Comparing Patrick Industries (NASDAQ:PATK) & Nifco (OTCMKTS:NIFCY)

Patrick Industries (NASDAQ:PATK) and Nifco (OTCMKTS:NIFCY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

93.3% of Patrick Industries shares are owned by institutional investors. 3.8% of Patrick Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Patrick Industries and Nifco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Patrick Industries	1	2	6	0	2.56
Nifco	0	0	0	0	0.00

Patrick Industries presently has a consensus price target of $113.12, suggesting a potential upside of 31.68%. Given Patrick Industries’ stronger consensus rating and higher possible upside, research analysts plainly believe Patrick Industries is more favorable than Nifco.

Earnings & Valuation

This table compares Patrick Industries and Nifco”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	$3.95 billion	0.70	$135.06 million	$4.22	20.36
Nifco	N/A	N/A	N/A	$244.83	0.05

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

Dividends

Patrick Industries pays an annual dividend of $1.88 per share and has a dividend yield of 2.2%. Nifco pays an annual dividend of $68.64 per share and has a dividend yield of 518.8%. Patrick Industries pays out 44.5% of its earnings in the form of a dividend. Nifco pays out 28.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Patrick Industries has increased its dividend for 6 consecutive years. Nifco is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Patrick Industries	3.74%	12.69%	4.69%
Nifco	N/A	N/A	N/A

Summary

Patrick Industries beats Nifco on 11 of the 14 factors compared between the two stocks.

About Patrick Industries

Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.

About Nifco

Nifco Inc. manufactures and sells industrial plastic parts and components in Japan, rest of Asia, North America, Mexico, and Europe. The company offers driver assistance systems, exterior, interiors, power train, and engine/fuel/transmission products for automobile; and products for motorcycle. It also offers household equipment, such as drawer closers, push latches, earthquake-proof latches, and door dampers; consumer electronics/office automation products that include dampers, free-stop hinges, push latches, and one-way clutches; and fashion/sport products, such as side release buckles, cord locks, and other buckles. In addition, the company offers buckles, fasteners, and speed lace systems; and manufactures and sells beds, as well as imports and sells furniture. Further, it operates automobile and motorcycle online showroom. The company was formerly known as Japan Industry Fastener Inc. and changed its name to Nifco Inc. in December 1970. Nifco Inc. was incorporated in 1946 and is headquartered in Kanagawa, Japan.