Analyzing Taylor Devices (NASDAQ:TAYD) and Ferguson (NYSE:FERG)

Taylor Devices (NASDAQ:TAYD) and Ferguson (NYSE:FERG) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares Taylor Devices and Ferguson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Devices	$44.59 million	4.33	$9.41 million	$2.85	21.53
Ferguson	$30.76 billion	1.45	$700.00 million	$9.90	23.07

Ferguson has higher revenue and earnings than Taylor Devices. Taylor Devices is trading at a lower price-to-earnings ratio than Ferguson, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Taylor Devices and Ferguson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Devices	20.04%	14.90%	13.00%
Ferguson	6.28%	36.42%	11.91%

Institutional & Insider Ownership

17.6% of Taylor Devices shares are held by institutional investors. Comparatively, 82.0% of Ferguson shares are held by institutional investors. 8.9% of Taylor Devices shares are held by company insiders. Comparatively, 0.2% of Ferguson shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Taylor Devices and Ferguson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Devices	0	1	0	0	2.00
Ferguson	0	7	12	2	2.76

Ferguson has a consensus price target of $250.47, suggesting a potential upside of 9.65%. Given Ferguson’s stronger consensus rating and higher possible upside, analysts clearly believe Ferguson is more favorable than Taylor Devices.

Volatility and Risk

Taylor Devices has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Ferguson has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Summary

Ferguson beats Taylor Devices on 11 of the 15 factors compared between the two stocks.

About Taylor Devices

Taylor Devices, Inc. engages in design, development, manufacture, and marketing of shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in the United States, Asia, and internationally. Its products include seismic dampers that are designed to mitigate the effects of earthquakes on structures; Fluidicshoks, which are compact shock absorbers primarily used in defense, aerospace, and commercial industries; and crane and industrial buffers, which are larger versions of the Fluidicshoks for industrial application on cranes and crane trolleys, truck docks, ladle and ingot cars, ore trolleys, and train car stops. The company's products also comprise self-adjusting shock absorbers that include versions of Fluidicshoks, and crane and industrial buffers, which automatically adjust to various impact conditions and are designed for high cycle application primarily in the heavy industry; liquid die springs that are used as component parts of machinery and equipment used in the manufacture of tools and dies; vibration dampers, which are primarily used by aerospace and defense industries to control the response of electronics and optical systems subjected to air, ship, or spacecraft vibration; machined springs used in the aerospace applications; and custom actuators for special aerospace and defense applications. It markets its products through a network of sales representatives and distributors. The company was incorporated in 1955 and is headquartered in North Tonawanda, New York.

About Ferguson

Ferguson Enterprises Inc. distributes plumbing and heating products in North America. The company provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, as well as heating, ventilation, and air conditioning (HVAC) to residential and non-residential customers. It also supplies specialist water and wastewater treatment products to residential, commercial, and infrastructure contractors, as well as supplies pipe, valves, and fittings solutions to industrial customers. In addition, it offers customized solutions, such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation, and project management services, as well as after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, and repair and operations support. The company sells its products through a network of distribution centers, branches, counter service and specialist sales associates, showroom consultants, and e-commerce channels. Ferguson Enterprises Inc. was founded in 1953 and is headquartered in Newport News, Virginia.