FGI Industries (NASDAQ:FGI – Get Free Report) and Trex (NYSE:TREX – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Profitability
This table compares FGI Industries and Trex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FGI Industries | -3.07% | 10.02% | 2.28% |
| Trex | 13.89% | 18.27% | 11.60% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for FGI Industries and Trex, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FGI Industries | 1 | 1 | 1 | 0 | 2.00 |
| Trex | 1 | 6 | 12 | 0 | 2.58 |
Valuation & Earnings
This table compares FGI Industries and Trex”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FGI Industries | $130.53 million | 0.12 | -$6.14 million | ($2.08) | -3.81 |
| Trex | $1.28 billion | 4.24 | $190.41 million | $1.72 | 31.60 |
Trex has higher revenue and earnings than FGI Industries. FGI Industries is trading at a lower price-to-earnings ratio than Trex, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
96.0% of Trex shares are held by institutional investors. 2.4% of FGI Industries shares are held by insiders. Comparatively, 0.9% of Trex shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
FGI Industries has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500. Comparatively, Trex has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Summary
Trex beats FGI Industries on 11 of the 14 factors compared between the two stocks.
About FGI Industries
FGI Industries Ltd. is a global manufacturer and distributor of bathroom and kitchen products. The company supplies products for residential, hospitality, commercial and multifamily construction applications through retail, wholesale and e-commerce channels. Its product portfolio includes bathroom vanities and furniture, bathtubs, shower systems and enclosures, toilets, sinks, faucets, mirrors and related accessories. FGI markets products under brands that include Foremost, Jetcoat and Bootz, serving customers across North America and other international markets.
About Trex
Trex Company, Inc. manufactures wood-alternative decking, railing and other outdoor-living products. Its composite decking is made primarily from reclaimed wood and recycled plastic, offering an alternative to traditional wood materials. The company’s products include composite deck boards and railing systems, along with accessories such as outdoor lighting and drainage products. Trex sells through a network of distributors, dealers and retailers, serving customers primarily in North America as well as international markets.
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