Contrasting ZJK Industrial (NASDAQ:ZJK) & Ferguson (NYSE:FERG)

Ferguson (NYSE:FERG) and ZJK Industrial (NASDAQ:ZJK) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Institutional & Insider Ownership

82.0% of Ferguson shares are owned by institutional investors. 0.2% of Ferguson shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Ferguson and ZJK Industrial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferguson	$31.16 billion	1.58	$1.86 billion	$9.90	25.49
ZJK Industrial	$46.28 million	2.60	$3.68 million	N/A	N/A

Ferguson has higher revenue and earnings than ZJK Industrial.

Risk and Volatility

Ferguson has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, ZJK Industrial has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Profitability

This table compares Ferguson and ZJK Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferguson	6.28%	35.73%	11.82%
ZJK Industrial	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ferguson and ZJK Industrial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferguson	0	6	11	2	2.79
ZJK Industrial	1	0	0	0	1.00

Ferguson presently has a consensus price target of $253.00, suggesting a potential upside of 0.25%. Given Ferguson’s stronger consensus rating and higher possible upside, analysts clearly believe Ferguson is more favorable than ZJK Industrial.

Summary

Ferguson beats ZJK Industrial on 11 of the 13 factors compared between the two stocks.

About Ferguson

Ferguson Enterprises Inc. distributes plumbing and heating products in North America. The company provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, as well as heating, ventilation, and air conditioning (HVAC) to residential and non-residential customers. It also supplies specialist water and wastewater treatment products to residential, commercial, and infrastructure contractors, as well as supplies pipe, valves, and fittings solutions to industrial customers. In addition, it offers customized solutions, such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation, and project management services, as well as after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, and repair and operations support. The company sells its products through a network of distribution centers, branches, counter service and specialist sales associates, showroom consultants, and e-commerce channels. Ferguson Enterprises Inc. was founded in 1953 and is headquartered in Newport News, Virginia.

About ZJK Industrial

ZJK Industrial Co. Ltd. is a high-tech enterprise specialized in manufacturing and sale of precision fasteners, structural parts and other precision metal parts products applied in a variety of industries, including intelligent electronic equipment, new energy vehicles, aerospace, energy storage systems and liquid cooling systems used in artificial intelligence supercomputers. ZJK Industrial Co. Ltd. is based in Shenzhen, China.