Core & Main (NYSE:CNM) and GATX (NYSE:GATX) Head-To-Head Review

GATX (NYSE:GATX) and Core & Main (NYSE:CNM) are both mid-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Institutional and Insider Ownership

93.1% of GATX shares are held by institutional investors. Comparatively, 94.2% of Core & Main shares are held by institutional investors. 1.9% of GATX shares are held by insiders. Comparatively, 1.5% of Core & Main shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares GATX and Core & Main’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GATX	17.94%	10.43%	2.12%
Core & Main	5.96%	25.98%	8.53%

Earnings & Valuation

This table compares GATX and Core & Main”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GATX	$1.74 billion	3.36	$333.30 million	$10.10	16.40
Core & Main	$7.65 billion	1.03	$441.00 million	$2.43	17.04

Core & Main has higher revenue and earnings than GATX. GATX is trading at a lower price-to-earnings ratio than Core & Main, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

GATX has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Core & Main has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for GATX and Core & Main, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GATX	0	0	4	0	3.00
Core & Main	1	5	7	0	2.46

GATX currently has a consensus price target of $219.33, suggesting a potential upside of 32.41%. Core & Main has a consensus price target of $54.40, suggesting a potential upside of 31.41%. Given GATX’s stronger consensus rating and higher possible upside, analysts plainly believe GATX is more favorable than Core & Main.

About GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.