Head to Head Analysis: ATS (NYSE:ATS) versus Ferguson (NYSE:FERG)

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

Valuation and Earnings

This table compares Ferguson and ATS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferguson	$31.32 billion	1.41	$1.86 billion	$8.60	26.49
ATS	$2.15 billion	1.22	$51.85 million	$0.52	51.28

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

Institutional and Insider Ownership

82.0% of Ferguson shares are held by institutional investors. Comparatively, 75.8% of ATS shares are held by institutional investors. 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 is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ferguson and ATS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferguson	0	6	11	1	2.72
ATS	2	1	4	0	2.29

Ferguson presently has a consensus target price of $277.21, suggesting a potential upside of 21.71%. ATS has a consensus target price of $42.50, suggesting a potential upside of 59.38%. Given ATS’s higher probable upside, analysts clearly believe ATS is more favorable than Ferguson.

Volatility & Risk

Ferguson has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, ATS has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ferguson	6.98%	38.81%	12.83%
ATS	2.40%	9.40%	3.73%

Summary

Ferguson beats ATS on 12 of the 15 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 ATS

ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including automation products and test solutions. In addition, it offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services, as well as after sales and services. Further, the company provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products/platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. Additionally, it offers value engineering, supply chain management, and integration and manufacturing capabilities, as well as other automation products and solutions; and software and digital solutions comprising connected factory floor management systems to capture, analyze, and use real time machine performance data to troubleshoot, deliver process and product solutions, prevent equipment downtime, drive operational efficiency, and unlock performance for sustainable production improvements. ATS Corporation serves life sciences, transportation and mobility, consumer products, food and beverage, electronics, nuclear, packaging, warehousing and distribution, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.