Advanced Drainage Systems (NYSE:WMS – Get Free Report) and Jewett-Cameron Trading (NASDAQ:JCTC – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Advanced Drainage Systems has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.
Profitability
This table compares Advanced Drainage Systems and Jewett-Cameron Trading’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Advanced Drainage Systems | 14.00% | 28.28% | 12.30% |
| Jewett-Cameron Trading | -20.94% | -38.35% | -29.29% |
Earnings and Valuation
This table compares Advanced Drainage Systems and Jewett-Cameron Trading”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Advanced Drainage Systems | $3.22 billion | 3.04 | $426.46 million | $5.79 | 22.44 |
| Jewett-Cameron Trading | $41.30 million | 0.24 | -$4.13 million | ($2.35) | -1.19 |
Advanced Drainage Systems has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading is trading at a lower price-to-earnings ratio than Advanced Drainage Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Advanced Drainage Systems and Jewett-Cameron Trading, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Advanced Drainage Systems | 0 | 2 | 8 | 0 | 2.80 |
| Jewett-Cameron Trading | 1 | 0 | 0 | 0 | 1.00 |
Advanced Drainage Systems currently has a consensus price target of $187.40, indicating a potential upside of 44.23%. Given Advanced Drainage Systems’ stronger consensus rating and higher probable upside, research analysts clearly believe Advanced Drainage Systems is more favorable than Jewett-Cameron Trading.
Insider and Institutional Ownership
89.8% of Advanced Drainage Systems shares are owned by institutional investors. Comparatively, 26.1% of Jewett-Cameron Trading shares are owned by institutional investors. 1.7% of Advanced Drainage Systems shares are owned by company insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Advanced Drainage Systems beats Jewett-Cameron Trading on 14 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 Jewett-Cameron Trading
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.
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