Wajax (OTCMKTS:WJXFF) versus urban-gro (NASDAQ:UGRO) Financial Analysis

urban-gro (NASDAQ:UGRO) and Wajax (OTCMKTS:WJXFF) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for urban-gro and Wajax, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
urban-gro	1	0	0	0	1.00
Wajax	0	2	0	0	2.00

Profitability

This table compares urban-gro and Wajax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
urban-gro	-82.11%	-118.44%	-33.76%
Wajax	N/A	N/A	N/A

Valuation and Earnings

This table compares urban-gro and Wajax”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
urban-gro	$17.40 million	0.07	-$22.10 million	($27.87)	-0.03
Wajax	N/A	N/A	N/A	$2.48	8.60

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

Insider and Institutional Ownership

20.6% of urban-gro shares are held by institutional investors. Comparatively, 32.4% of Wajax shares are held by institutional investors. 4.4% of urban-gro shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Wajax beats urban-gro on 7 of the 9 factors compared between the two stocks.

About urban-gro

urban-gro, Inc. engages in the designing, engineering, building, and integrating complex environmental equipment systems for indoor controlled environment agriculture (CEA) cultivation and retail facilities in the United States, Canada, and Europe. The company provides architectural design, engineering, and construction services comprising pre-construction, cultivation space programming (CSP), architectural and interior design, engineering, integrated cultivation design, owner's representative/construction management, and general contracting services; and maintenance, training, and support services. It also offers facility and equipment commissioning services; gro-care crop and asset protection services, including training services, equipment maintenance services, asset protection program, and an interactive online operating support system for gro-care and client document delivery and project management; and property condition assessment services. In addition, the company provides integrated equipment systems solutions, such as design, source, and integration of complex environmental equipment systems comprising heating, ventilation, and air conditioning solutions, as well as environmental control, fertigation, irrigation distribution, water treatment, and wastewater reclamation systems; and commercial horticulture lighting solutions, rolling and automated container benching systems, specialty fans, microbial mitigation, and odor reduction systems. Further, it offers value-Added Reselling (VAR) of cultivation equipment systems; and strategic vendor relationships with premier manufacturers. It primarily markets and sells its solutions to clients in the CEA that includes operators and facilitators in the cannabis and produce markets; and commercial sectors comprising food and beverage consumer packaged goods companies, healthcare, higher education, and hospitality. urban-gro, Inc. was founded in 2014 and is based in Lafayette, Colorado.

About Wajax

Wajax Corporation provides equipment, parts, and services to construction, forestry, mining, industrial and commercial, oil sands, transportation, metal processing, government, utilities, and oil and gas sectors. The company offers compact excavators, dump trucks, excavators, wheel loaders, and wheeled excavators; aerial devices, boom lifts, cranes, digger derricks, drills, lifts, and material and scissor lifts; marine, off and on highway engines, and transmissions; and feller bunchers, felling heads, flail debarkers, forwarders, grinders, harvesting heads, log loaders, mulchers, skidders, track and wheel harvesters, and woodchippers. It also provides bearings, bulk material handling, filtration, fluid handling, hydraulics, industrial electric motors and variable frequency drives, instrumentation, pneumatics, power transmissions, and PPE and safety supplies, as well as sealing, belting, lubricants, and hydraulic hoses; combination sweeper scrubbers, container handlers, electric ride scooters, end rider trucks, forklifts, goosenecks and ballast weights, order pickers, outdoor cleaning machines, pallet stackers and trucks, reach stackers, rider and walk behind sweepers, side loaders, utility vehicles, tow, terminal, and RoRo tractors; and equipment transport, filtration, fluid handling, mining excavators, rigid frame trucks, rope shovel, underground battery powered and drill jumbos, underground haul trucks and loaders, and underground utility trucks. In addition, the company offers power generation solutions; cages and partitions, guarding and barriers, lockers, cabinets, workstations, rack accessories and protections, racking, shelving, and storage platforms; storage system design, installation, and inspection services, as well as equipment rentals and engineered repair services. The company was formerly known as Wajax Income Fund and changed its name to Wajax Corporation in January 2011. Wajax Corporation was founded in 1858 and is headquartered in Mississauga, Canada.