American Woodmark Corporation (NASDAQ: AMWD) and Caesarstone (NASDAQ:CSTE) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitabiliy.
Risk & Volatility
American Woodmark Corporation has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Caesarstone has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.
Earnings and Valuation
This table compares American Woodmark Corporation and Caesarstone’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Woodmark Corporation||$1.03 billion||1.60||$123.52 million||$4.34||23.32|
|Caesarstone||$558.04 million||2.21||$128.29 million||$2.13||16.85|
Caesarstone has higher revenue, but lower earnings than American Woodmark Corporation. Caesarstone is trading at a lower price-to-earnings ratio than American Woodmark Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for American Woodmark Corporation and Caesarstone, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Woodmark Corporation||0||1||1||0||2.50|
American Woodmark Corporation currently has a consensus target price of $88.00, indicating a potential downside of 13.04%. Caesarstone has a consensus target price of $42.33, indicating a potential upside of 17.92%. Given Caesarstone’s higher probable upside, analysts clearly believe Caesarstone is more favorable than American Woodmark Corporation.
Insider and Institutional Ownership
81.3% of American Woodmark Corporation shares are owned by institutional investors. Comparatively, 58.6% of Caesarstone shares are owned by institutional investors. 1.1% of American Woodmark Corporation 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.
This table compares American Woodmark Corporation and Caesarstone’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Woodmark Corporation||6.91%||22.19%||14.56%|
American Woodmark Corporation beats Caesarstone on 8 of the 13 factors compared between the two stocks.
About American Woodmark Corporation
American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The Company offers framed stock cabinets in approximately 500 different cabinet lines, ranging in price from relatively inexpensive to medium-priced styles. Styles vary by design and color from natural wood finishes to low-pressure laminate surfaces. The product offering of stock cabinets includes approximately 90 door designs in over 20 colors. Stock cabinets consist of cabinet interiors of varying dimensions and construction options, and a maple, oak, cherry, or hickory front frame, door and/or drawer front. The Company’s products are sold under the brand names of American Woodmark, Simply Woodmark, Timberlake, Shenandoah Cabinetry, Shenandoah Value Series and Waypoint Living Spaces. The Company’s primary raw materials used include hard maple, soft maple, oak, cherry, and hickory lumber and plywood.
Caesarstone Ltd., formerly Caesarstone Sdot-Yam Ltd., is a manufacturer of engineered quartz surfaces. The Company’s products consist of engineered quartz, which are installed as countertops in residential kitchens. Its products are primarily used as kitchen countertops in the renovation, remodeling and residential construction end markets. The other applications of its products include vanity tops, wall panels, back splashes, floor tiles, stairs, and other interior surfaces that are used in a range of residential and non-residential applications. Its product offerings include over four collections, such as Classico, Concetto, Motivo and Supernatural, which are marketed as specialty product collections. It sells its products under the Caesarstone brand. Its designs range from fine-grained patterns to coarse-grained color blends with a variegated visual texture. It offers over 70 different colors, with four textures and three thicknesses available for each of the collection’s colors.
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