Advanced Drainage Systems (NYSE:WMS) vs. Janus International Group (NYSE:JBI) Critical Comparison

Advanced Drainage Systems (NYSE:WMS) and Janus International Group (NYSE:JBI) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Advanced Drainage Systems and Janus International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Drainage Systems	0	2	7	0	2.78
Janus International Group	0	3	1	0	2.25

Advanced Drainage Systems currently has a consensus target price of $152.56, indicating a potential upside of 6.09%. Janus International Group has a consensus target price of $10.67, indicating a potential upside of 4.83%. Given Advanced Drainage Systems’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Advanced Drainage Systems is more favorable than Janus International Group.

Profitability

This table compares Advanced Drainage Systems and Janus International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Drainage Systems	14.82%	29.57%	12.23%
Janus International Group	4.85%	13.10%	5.36%

Risk & Volatility

Advanced Drainage Systems has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Janus International Group has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Insider & Institutional Ownership

89.8% of Advanced Drainage Systems shares are owned by institutional investors. Comparatively, 88.8% of Janus International Group shares are owned by institutional investors. 1.6% of Advanced Drainage Systems shares are owned by company insiders. Comparatively, 3.9% of Janus International Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Advanced Drainage Systems and Janus International Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Drainage Systems	$2.90 billion	3.85	$450.17 million	$5.54	25.96
Janus International Group	$963.80 million	1.47	$70.40 million	$0.31	32.82

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

Summary

Advanced Drainage Systems beats Janus International Group on 11 of the 14 factors compared between the two stocks.

About Advanced Drainage Systems

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 Janus International Group

Janus International Group, Inc. manufacturers and supplies turn-key self-storage, and commercial and industrial building solutions in North America and internationally. The company offers roll up and swing doors, hallway systems, relocatable storage moveable additional storage structures units, and other solutions. It also provides facility and door automation and access control technologies; and Noke smart entry system. The company was founded in 2002 and is headquartered in Temple, Georgia.