Reviewing Jewett-Cameron Trading (NASDAQ:JCTC) & Q.E.P. (OTCMKTS:QEPC)

Jewett-Cameron Trading (NASDAQ:JCTC) and Q.E.P. (OTCMKTS:QEPC) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Jewett-Cameron Trading and Q.E.P., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jewett-Cameron Trading	1	0	0	0	1.00
Q.E.P.	0	0	0	0	0.00

Volatility and Risk

Jewett-Cameron Trading has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Q.E.P. has a beta of -0.22, suggesting that its stock price is 122% less volatile than the S&P 500.

Insider & Institutional Ownership

26.0% of Jewett-Cameron Trading shares are held by institutional investors. 1.3% of Jewett-Cameron Trading shares are held by company insiders. Comparatively, 51.1% of Q.E.P. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Jewett-Cameron Trading and Q.E.P.’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%
Q.E.P.	6.59%	15.99%	10.47%

Earnings & Valuation

This table compares Jewett-Cameron Trading and Q.E.P.”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	$39.41 million	0.26	-$4.13 million	($2.35)	-1.24
Q.E.P.	$233.71 million	0.74	$15.77 million	$3.50	16.00

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

Summary

Q.E.P. beats Jewett-Cameron Trading on 9 of the 12 factors compared between the two stocks.

About Jewett-Cameron Trading

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 Q.E.P.

Q.E.P. Co., Inc. designs, manufactures, and distributes flooring installation solutions for commercial and home improvement projects worldwide. The company’s product portfolio includes tile saws, blades, and accessories; tile cutters and accessories; hand tools; tile spacers and leveling systems; suction cups; trowels and floats; mixers and paddles; drill bits, hole saws, and jigsaw blades; scarpers and blades; clean-up, repair, and maintenance products; knee pads and safety products; underlayment products; installation kits; and cement boards tools. It markets its products under the QEP, LASH, Roberts, Capitol, Homelux, Brutus, PRCI, Tomecanic, andPremix-Marbletite (PMM) brands. The company sells its products to home improvement retail centers and specialty distribution outlets. Q.E.P. Co., Inc. was founded in 1979 and is headquartered in Boca Raton, Florida.