Wajax (WJXFF) & Its Peers Critical Analysis

Wajax (OTCMKTS:WJXFF) is one of 158 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it compare to its rivals? We will compare Wajax to related businesses based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

32.4% of Wajax shares are owned by institutional investors. Comparatively, 50.8% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 16.7% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Wajax pays an annual dividend of $2.40 per share and has a dividend yield of 10.4%. Wajax pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.5% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Wajax and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wajax	0	3	0	0	2.00
Wajax Competitors	1400	4847	6642	222	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 9.45%. Given Wajax’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Wajax has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Wajax and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Wajax	N/A	N/A	9.32
Wajax Competitors	$6.36 billion	$355.21 million	24.20

Wajax’s rivals have higher revenue and earnings than Wajax. Wajax is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Wajax and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wajax	N/A	N/A	N/A
Wajax Competitors	2.82%	-34.23%	3.61%

Summary

Wajax rivals beat Wajax on 11 of the 13 factors compared.

About Wajax

Wajax Corporation provides equipment, parts, and services to construction, forestry, mining, industrial and commercial, oil sands, transportation, metal processing, government, utilities, and oil and gas sectors. The company offers compact excavators, dump trucks, excavators, wheel loaders, and wheeled excavators; aerial devices, boom lifts, cranes, digger derricks, drills, lifts, and material and scissor lifts; marine, off and on highway engines, and transmissions; and feller bunchers, felling heads, flail debarkers, forwarders, grinders, harvesting heads, log loaders, mulchers, skidders, track and wheel harvesters, and woodchippers. It also provides bearings, bulk material handling, filtration, fluid handling, hydraulics, industrial electric motors and variable frequency drives, instrumentation, pneumatics, power transmissions, and PPE and safety supplies, as well as sealing, belting, lubricants, and hydraulic hoses; combination sweeper scrubbers, container handlers, electric ride scooters, end rider trucks, forklifts, goosenecks and ballast weights, order pickers, outdoor cleaning machines, pallet stackers and trucks, reach stackers, rider and walk behind sweepers, side loaders, utility vehicles, tow, terminal, and RoRo tractors; and equipment transport, filtration, fluid handling, mining excavators, rigid frame trucks, rope shovel, underground battery powered and drill jumbos, underground haul trucks and loaders, and underground utility trucks. In addition, the company offers power generation solutions; cages and partitions, guarding and barriers, lockers, cabinets, workstations, rack accessories and protections, racking, shelving, and storage platforms; storage system design, installation, and inspection services, as well as equipment rentals and engineered repair services. The company was formerly known as Wajax Income Fund and changed its name to Wajax Corporation in January 2011. Wajax Corporation was founded in 1858 and is headquartered in Mississauga, Canada.