Analyzing Latham Group (NASDAQ:SWIM) and Aspen Aerogels (NYSE:ASPN)

Latham Group (NASDAQ:SWIM) and Aspen Aerogels (NYSE:ASPN) are both small-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Analyst Ratings

This is a summary of current recommendations for Latham Group and Aspen Aerogels, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latham Group	2	3	2	0	2.00
Aspen Aerogels	2	1	3	0	2.17

Latham Group presently has a consensus price target of $7.50, indicating a potential upside of 28.87%. Aspen Aerogels has a consensus price target of $5.19, indicating a potential downside of 17.85%. Given Latham Group’s higher possible upside, research analysts plainly believe Latham Group is more favorable than Aspen Aerogels.

Volatility and Risk

Latham Group has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Aspen Aerogels has a beta of 3.03, indicating that its stock price is 203% more volatile than the S&P 500.

Profitability

This table compares Latham Group and Aspen Aerogels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latham Group	1.55%	2.13%	1.02%
Aspen Aerogels	-48.64%	-22.16%	-12.85%

Earnings & Valuation

This table compares Latham Group and Aspen Aerogels”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latham Group	$551.81 million	1.24	$11.12 million	$0.07	83.14
Aspen Aerogels	$271.10 million	1.93	-$389.55 million	($1.36)	-4.64

Latham Group has higher revenue and earnings than Aspen Aerogels. Aspen Aerogels is trading at a lower price-to-earnings ratio than Latham Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

83.9% of Latham Group shares are owned by institutional investors. Comparatively, 97.6% of Aspen Aerogels shares are owned by institutional investors. 3.3% of Latham Group shares are owned by company insiders. Comparatively, 3.0% of Aspen Aerogels shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Latham Group beats Aspen Aerogels on 9 of the 14 factors compared between the two stocks.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

About Aspen Aerogels

Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.