A. O. Smith (NYSE:AOS – Get Free Report) and Jewett-Cameron Trading (NASDAQ:JCTC – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Institutional & Insider Ownership
76.1% of A. O. Smith shares are owned by institutional investors. Comparatively, 26.1% of Jewett-Cameron Trading shares are owned by institutional investors. 0.5% of A. O. Smith shares are owned by company insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares A. O. Smith and Jewett-Cameron Trading’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| A. O. Smith | 13.15% | 27.88% | 15.21% |
| Jewett-Cameron Trading | -20.94% | -38.35% | -29.29% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| A. O. Smith | 2 | 5 | 2 | 0 | 2.00 |
| Jewett-Cameron Trading | 1 | 0 | 0 | 0 | 1.00 |
A. O. Smith currently has a consensus target price of $67.75, indicating a potential upside of 17.06%. 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.
Risk & Volatility
A. O. Smith has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
Valuation & Earnings
This table compares A. O. Smith and Jewett-Cameron Trading”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| A. O. Smith | $3.83 billion | 2.05 | $546.20 million | $3.60 | 16.08 |
| Jewett-Cameron Trading | $41.30 million | 0.26 | -$4.13 million | ($2.35) | -1.28 |
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.
Summary
A. O. Smith beats Jewett-Cameron Trading on 13 of the 14 factors compared between the two stocks.
About A. O. Smith
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.
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.
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