Simpson Manufacturing (NYSE:SSD) versus Jewett-Cameron Trading (NASDAQ:JCTC) Head to Head Contrast

Jewett-Cameron Trading (NASDAQ:JCTC) and Simpson Manufacturing (NYSE:SSD) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Jewett-Cameron Trading and Simpson Manufacturing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jewett-Cameron Trading	1	0	0	0	1.00
Simpson Manufacturing	1	2	3	0	2.33

Simpson Manufacturing has a consensus target price of $216.25, indicating a potential upside of 17.26%. Given Simpson Manufacturing’s stronger consensus rating and higher possible upside, analysts plainly believe Simpson Manufacturing is more favorable than Jewett-Cameron Trading.

Risk & Volatility

Jewett-Cameron Trading has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Simpson Manufacturing has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Insider and Institutional Ownership

26.1% of Jewett-Cameron Trading shares are owned by institutional investors. Comparatively, 93.7% of Simpson Manufacturing shares are owned by institutional investors. 1.3% of Jewett-Cameron Trading shares are owned by company insiders. Comparatively, 0.3% of Simpson Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Jewett-Cameron Trading and Simpson Manufacturing’s 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%
Simpson Manufacturing	15.65%	18.45%	12.32%

Earnings and Valuation

This table compares Jewett-Cameron Trading and Simpson Manufacturing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jewett-Cameron Trading	$41.30 million	0.23	-$4.13 million	($2.35)	-1.15
Simpson Manufacturing	$2.33 billion	3.25	$345.08 million	$9.15	20.15

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

Summary

Simpson Manufacturing beats Jewett-Cameron Trading on 12 of the 13 factors compared between the two stocks.

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.

About Simpson Manufacturing

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products. It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, infrastructure construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Italy, Romania, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. The company was founded in 1956 and is headquartered in Pleasanton, California.