Reviewing Burnham (OTCMKTS:BURCA) & DNOW (NYSE:DNOW)

DNOW (NYSE:DNOW) and Burnham (OTCMKTS:BURCA) are both small-cap 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.

Earnings and Valuation

This table compares DNOW and Burnham”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.82 billion	0.43	-$89.00 million	($0.29)	-40.22
Burnham	$258.11 million	0.36	-$21.45 million	($4.58)	-5.90

Burnham has lower revenue, but higher earnings than DNOW. DNOW is trading at a lower price-to-earnings ratio than Burnham, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DNOW and Burnham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	-2.66%	7.26%	4.68%
Burnham	-8.03%	11.23%	7.11%

Volatility & Risk

DNOW has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Burnham has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.

Institutional & Insider Ownership

97.6% of DNOW shares are held by institutional investors. Comparatively, 1.5% of Burnham shares are held by institutional investors. 2.7% of DNOW 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 Recommendations

This is a breakdown of recent recommendations and price targets for DNOW and Burnham, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	0	2	2	0	2.50
Burnham	0	0	0	0	0.00

DNOW currently has a consensus target price of $17.00, indicating a potential upside of 45.74%. Given DNOW’s stronger consensus rating and higher probable upside, analysts clearly believe DNOW is more favorable than Burnham.

Summary

DNOW beats Burnham on 10 of the 14 factors compared between the two stocks.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

About Burnham

Burnham Holdings, Inc. designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States and internationally. Its residential hydronic heating products include cast iron, stainless steel, and steel boilers; cast iron and steel heat distribution products; radiators; and warm air furnaces and central air conditioning systems for the residential heating and cooling markets, including units for the manufactured housing industry. The company's commercial and industrial heating products comprise a range of cast iron, stainless steel, fire tube, water tube, copper tube boilers, and water heaters; and boiler room accessories that are used for various applications, such as military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. The company sells its residential products through wholesale distributors to builders, heating contractors, fuel dealers, and utilities for resale to end-use customers; and commercial products primarily through independent sales representatives, directly to contractors, or end users. Burnham Holdings, Inc. is based in Lancaster, Pennsylvania.