Reviewing Jewett-Cameron Trading (NASDAQ:JCTC) and Home Depot (NYSE:HD)

Jewett-Cameron Trading (NASDAQ:JCTCGet Free Report) and Home Depot (NYSE:HDGet Free Report) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

26.0% of Jewett-Cameron Trading shares are held by institutional investors. Comparatively, 70.9% of Home Depot shares are held by institutional investors. 1.3% of Jewett-Cameron Trading shares are held by company insiders. Comparatively, 0.1% of Home Depot shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Jewett-Cameron Trading and Home Depot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jewett-Cameron Trading -2.66% -5.00% -4.44%
Home Depot 9.45% 452.60% 16.91%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jewett-Cameron Trading $47.43 million 0.29 $720,000.00 ($0.36) -10.86
Home Depot $159.51 billion 2.23 $15.14 billion $14.92 23.97

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

Volatility & Risk

Jewett-Cameron Trading has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Home Depot has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Jewett-Cameron Trading and Home Depot, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jewett-Cameron Trading 0 0 0 0 0.00
Home Depot 0 9 20 1 2.73

Home Depot has a consensus target price of $434.08, indicating a potential upside of 21.38%. Given Home Depot’s stronger consensus rating and higher probable upside, analysts plainly believe Home Depot is more favorable than Jewett-Cameron Trading.

Summary

Home Depot beats Jewett-Cameron Trading on 14 of the 15 factors compared between the two stocks.

About Jewett-Cameron Trading

(Get Free Report)

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 Home Depot

(Get Free Report)

The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, and building service contractors, as well as specialty tradesmen, such as electricians, plumbers, and painters. It sells its products through websites, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations (MRO) products and related services; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.

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