Jewett-Cameron Trading (NASDAQ:JCTC) vs. Advanced Drainage Systems (NYSE:WMS) Critical Comparison

Advanced Drainage Systems (NYSE:WMS – Get Free Report) and Jewett-Cameron Trading (NASDAQ:JCTC – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Advanced Drainage Systems and Jewett-Cameron Trading, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Drainage Systems 0 2 8 0 2.80
Jewett-Cameron Trading 1 0 0 0 1.00

Advanced Drainage Systems currently has a consensus target price of $187.40, indicating a potential upside of 43.76%. Given Advanced Drainage Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Advanced Drainage Systems is more favorable than Jewett-Cameron Trading.

Insider and Institutional Ownership

89.8% of Advanced Drainage Systems shares are owned by institutional investors. Comparatively, 26.1% of Jewett-Cameron Trading shares are owned by institutional investors. 1.7% of Advanced Drainage Systems shares are owned by insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Advanced Drainage Systems has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Earnings and Valuation

This table compares Advanced Drainage Systems and Jewett-Cameron Trading”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advanced Drainage Systems $3.05 billion 3.22 $426.46 million $5.79 22.51
Jewett-Cameron Trading $41.30 million 0.23 -$4.13 million ($2.35) -1.15

Advanced Drainage Systems has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading is trading at a lower price-to-earnings ratio than Advanced Drainage Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Advanced Drainage Systems and Jewett-Cameron Trading’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advanced Drainage Systems 14.00% 28.28% 12.30%
Jewett-Cameron Trading -20.94% -38.35% -29.29%

Summary

Advanced Drainage Systems beats Jewett-Cameron Trading on 14 of the 14 factors compared between the two stocks.

About Advanced Drainage Systems

(Get Free Report)

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.

About Jewett-Cameron Trading

(Get Free Report)

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.

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