Head-To-Head Review: Waxman Industries (OTCMKTS:WXMN) vs. Ferguson (NASDAQ:FERG)

Waxman Industries (OTCMKTS:WXMN) and Ferguson (NASDAQ:FERG) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Profitability

This table compares Waxman Industries and Ferguson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waxman Industries	N/A	N/A	N/A
Ferguson	6.00%	37.99%	12.18%

Earnings & Valuation

This table compares Waxman Industries and Ferguson’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waxman Industries	N/A	N/A	N/A	N/A	N/A
Ferguson	$29.73 billion	1.43	$1.89 billion	$8.60	24.37

Ferguson has higher revenue and earnings than Waxman Industries.

Insider & Institutional Ownership

82.0% of Ferguson shares are held by institutional investors. 67.9% of Waxman Industries shares are held by insiders. Comparatively, 0.2% of Ferguson 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Waxman Industries and Ferguson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waxman Industries	0	0	0	0	N/A
Ferguson	1	1	6	0	2.63

Ferguson has a consensus target price of $166.50, indicating a potential downside of 20.54%. Given Ferguson’s higher possible upside, analysts clearly believe Ferguson is more favorable than Waxman Industries.

Volatility and Risk

Waxman Industries has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Ferguson has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Summary

Ferguson beats Waxman Industries on 8 of the 9 factors compared between the two stocks.

About Waxman Industries

Waxman Industries, Inc. designs, develops, and distributes surface protection and floor care products, and other home improvement and hardware products. The company's floor care and surface protection products include furniture sliders, felt pads, furniture tips and glides, bumpers, gripper pads, caster and cups, and door stops; shower heads and accessories; and plumping products comprise sink and faucet repair products, water leak detection products, toilet repair products, plungers, drain cleaning and repair products, water supply repair products, and hose and pipe repair products. It also offers bathroom and kitchen faucets; and home organization and storage solutions. The company sells its products under the Kleen Freak, SoftTouch, PlumCraft, Super Sliders, leakSMART, BodyMoods, and SimplyClean brand names. Waxman Industries, Inc. was incorporated in 1989 and is based in Bedford Heights, Ohio.

About Ferguson

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets. The company also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, fabrication, and others, as well as heating, ventilation, and air conditioning products under the Ferguson brand name. In addition, it supplies pipes, valves, fittings, plumbing supplies, water and wastewater treatment products, and refrigeration products under Wolseley brand name. Further, the company provides after-sales support comprising warranty, credit, project-based billing, returns, maintenance, repair, and operations support. It sells its products through wholesale distributors, supply houses, retail enterprises, and online. Ferguson plc was founded in 1953 and is headquartered in Wokingham, the United Kingdom.