Head to Head Review: Noka Resources (NX) versus Valmont Industries (VMI)

Valmont Industries (NYSE: VMI) and Noka Resources (NYSE:NX) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Institutional and Insider Ownership

84.8% of Valmont Industries shares are held by institutional investors. 3.3% of Valmont Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Valmont Industries has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Noka Resources has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Dividends

Valmont Industries pays an annual dividend of $1.50 per share and has a dividend yield of 0.9%. Noka Resources does not pay a dividend. Valmont Industries pays out 17.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Valmont Industries and Noka Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valmont Industries 0 1 3 0 2.75
Noka Resources 0 1 2 0 2.67

Valmont Industries currently has a consensus target price of $176.00, suggesting a potential upside of 11.08%. Given Noka Resources’ higher probable upside, analysts clearly believe Noka Resources is more favorable than Valmont Industries.

Profitability

This table compares Valmont Industries and Noka Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valmont Industries 7.02% 14.56% 6.24%
Noka Resources 4.45% 10.70% 5.23%

Earnings and Valuation

This table compares Valmont Industries and Noka Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Valmont Industries $2.52 billion 1.42 $173.23 million $8.38 18.91
Noka Resources N/A N/A N/A C$0.39 54.87

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

Summary

Valmont Industries beats Noka Resources on 11 of the 13 factors compared between the two stocks.

About Valmont Industries

Valmont Industries, Inc. is a producer of fabricated metal products, and steel, aluminum and composite pole, tower and other structures, and mechanized irrigation systems. The Company’s segments are Engineered Support Structures (ESS); Utility Support Structures; Energy and Mining; Coatings; Irrigation, and Other. The ESS segment manufactures steel, aluminum, and composite poles and structures. The Utility Support Structures Segment manufactures steel and concrete pole structures for electrical transmission, substation and distribution applications. The Energy and Mining Segment produces access systems, which are engineered structures and components that allow people to move safely in an industrial, infrastructure or commercial facility. The Coatings Segment consists of galvanizing, anodizing and powder coating services on a global basis. The Irrigation Segment manufactures and distributes mechanical irrigation equipment and related service parts under the Valley brand name.

About Noka Resources

Quanex Building Products Corporation manufactures components for original equipment manufacturers (OEM) in the building products industry. The Company’s components can be categorized as window and door (fenestration) components, and kitchen and bath cabinet components. The Company operates through three segments: North American Engineered Components (NA Engineered Components), which consists of four operating segments primarily focused on the fenestration market in North America manufacturing vinyl profiles, insulating glass (IG) spacers, screens and other fenestration components; European Engineered Components (EU Engineered Components), which consists of the United Kingdom-based vinyl extrusion business, manufacturing vinyl profiles and conservatories, and the European insulating glass business manufacturing IG spacers, and North American Cabinet Components (NA Cabinet Components), which consists of the North American cabinet door and components business.

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