Financial Analysis: Jewett-Cameron Trading (NASDAQ:JCTC) vs. UFP Industries (NASDAQ:UFPI)

Jewett-Cameron Trading (NASDAQ:JCTC – Get Free Report) and UFP Industries (NASDAQ:UFPI – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

26.1% of Jewett-Cameron Trading shares are held by institutional investors. Comparatively, 81.8% of UFP Industries shares are held by institutional investors. 1.3% of Jewett-Cameron Trading shares are held by company insiders. Comparatively, 2.5% of UFP Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Jewett-Cameron Trading and UFP Industries”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jewett-Cameron Trading $41.30 million 0.25 -$4.13 million ($2.35) -1.24
UFP Industries $6.32 billion 0.68 $294.79 million $4.36 17.76

UFP Industries has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading is trading at a lower price-to-earnings ratio than UFP Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Jewett-Cameron Trading and UFP Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jewett-Cameron Trading -20.94% -38.35% -29.29%
UFP Industries 3.99% 8.00% 6.11%

Risk and Volatility

Jewett-Cameron Trading has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, UFP Industries has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Jewett-Cameron Trading and UFP Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jewett-Cameron Trading 1 0 0 0 1.00
UFP Industries 1 3 3 0 2.29

UFP Industries has a consensus price target of $104.50, suggesting a potential upside of 34.96%. Given UFP Industries’ stronger consensus rating and higher possible upside, analysts plainly believe UFP Industries is more favorable than Jewett-Cameron Trading.

Summary

UFP Industries beats Jewett-Cameron Trading on 13 of the 13 factors compared between the two stocks.

About Jewett-Cameron Trading

(Get Free Report)

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.

About UFP Industries

(Get Free Report)

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and non-wood composites, and other materials in North America, Europe, Asia, and Australia. It operates through Retail, Packaging, and Construction segments. The Retail segment offers treated lumber products, including decking, fencing, lattice, and other products; pressure-treated and fire-retardant products used primarily for outdoor decking environments; and lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products. This segment also offers wood plastic composites, composite decking, and related decking accessories, including non- aluminum railing systems, balusters, post caps, and other products, as well as pre-painted and primed shiplap and project boards. The Packaging segment provides custom and structural packaging products, pallets, corrugate, foam, labels, strapping, and films. The construction segment offers roof trusses, cut-to-size dimensional and board lumber, plywoods, and oriented strand boards; engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages; and alternate materials components, such as metal trusses, sheathed and pre-finished light gauge metal wall panels, aluminum decks, and rail accessories, as well as distributes siding, electrical, and plumbing products. This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and other infrastructure projects. It also offers interior fixtures, millwork, and casework for retail and commercial structures. The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was incorporated in 1955 and is headquartered in Grand Rapids, Michigan.

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