Critical Comparison: Broadwind Energy (NASDAQ:BWEN) vs. Ferguson (NYSE:FERG)

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

Risk and Volatility

Broadwind Energy has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Ferguson has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares Broadwind Energy and Ferguson”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadwind Energy	$143.14 million	0.52	$1.15 million	$0.22	14.59
Ferguson	$30.76 billion	1.43	$700.00 million	$9.90	22.69

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

Institutional & Insider Ownership

33.3% of Broadwind Energy shares are held by institutional investors. Comparatively, 82.0% of Ferguson shares are held by institutional investors. 5.1% of Broadwind Energy shares are held by insiders. Comparatively, 0.2% of Ferguson shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Broadwind Energy and Ferguson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadwind Energy	0	2	2	0	2.50
Ferguson	0	7	12	2	2.76

Broadwind Energy currently has a consensus price target of $4.50, suggesting a potential upside of 40.19%. Ferguson has a consensus price target of $250.47, suggesting a potential upside of 11.52%. Given Broadwind Energy’s higher possible upside, research analysts plainly believe Broadwind Energy is more favorable than Ferguson.

Profitability

This table compares Broadwind Energy and Ferguson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadwind Energy	3.37%	-2.05%	-0.99%
Ferguson	6.28%	36.42%	11.91%

Summary

Ferguson beats Broadwind Energy on 12 of the 15 factors compared between the two stocks.

About Broadwind Energy

Broadwind, Inc. manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets. It offers steel towers and adapters primarily to wind turbine manufacturers. Its Gearing segment provides gearing, gearboxes, and precision machined components to a range of customers in diverse markets, including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, and other industrial markets. This segment also offers heat treat services for aftermarket and original equipment manufacturer applications. The Industrial Solutions segment provides supply chain solutions for offering instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services, and electromechanical devices; light fabrication, inventory management, and kitting and assembly services; packaging solutions; and supply chain solutions, light fabrication, inventory management, and kitting and assembly services for combined cycle natural gas turbine market. It sells its products to the energy, mining, and infrastructure sectors through its direct sales force and independent sales agents. The company was formerly known as Broadwind Energy, Inc. and changed its name to Broadwind, Inc. in May 2020. Broadwind, Inc. is headquartered in Cicero, Illinois.

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.