Critical Comparison: Amada (OTCMKTS:AMDLY) and Core & Main (NYSE:CNM)

Core & Main (NYSE:CNM) and Amada (OTCMKTS:AMDLY) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Earnings & Valuation

This table compares Core & Main and Amada”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core & Main	$7.44 billion	1.35	$411.00 million	$2.24	22.65
Amada	$2.60 billion	1.45	$213.75 million	$2.33	19.74

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

Risk and Volatility

Core & Main has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Amada has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Institutional and Insider Ownership

94.2% of Core & Main shares are owned by institutional investors. 3.5% of Core & Main shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Core & Main and Amada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.57%	25.44%	7.54%
Amada	7.29%	5.41%	4.34%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Core & Main and Amada, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	4	6	0	2.60
Amada	0	0	0	0	0.00

Core & Main currently has a consensus price target of $59.60, indicating a potential upside of 17.48%. Given Core & Main’s stronger consensus rating and higher possible upside, research analysts clearly believe Core & Main is more favorable than Amada.

Summary

Core & Main beats Amada on 11 of the 14 factors compared between the two stocks.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.

About Amada

Amada Co., Ltd., together with its subsidiaries, manufactures, sells, leases, repairs, maintains, checks, and inspects metalworking machinery, software, and peripheral equipment in Japan, North America, Europe, Asia, and internationally. It offers sheet metal fabrication machines, including laser machines, punch and laser combination machines, turret punch presses, press brakes, bending robots, and welders, as well as software solutions; general fabrication machines, such as shearing and deburring machines, corner shear, iron worker, AMS SPACE series, horizontal benders, tapping and fastener insertion machines, and environment related products; cutting fluids, lubricants, and other consumables; and a range of tools for bending and punching. The company also provides metal cutting machines, such as hyper saw, pulse cutting band saw, automatic and semi-automatic general-purpose band saw, vertical band saw, circular saw, and other machines; structural steel machines; grinding machines; and band saw blades and circular saw blades that are used for metal cutting machines. In addition, it offers precision welding machines, including laser welders and markers, resistance welders, and systems for use in automobile parts, electronic components, and medical instruments. Further, the company provides consumables, and tooling equipment. Additionally, it offers stamping presses and stamping press equipment, and spring machines. The company was formerly known as Amada Holdings Co., Ltd. Amada Co., Ltd. was founded in 1946 and is headquartered in Isehara, Japan.