Reviewing Core & Main (NYSE:CNM) & Rectitude (NASDAQ:RECT)

Rectitude (NASDAQ:RECT) and Core & Main (NYSE:CNM) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Valuation & Earnings

This table compares Rectitude and Core & Main”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$39.74 million	0.46	$2.78 million	N/A	N/A
Core & Main	$7.65 billion	1.18	$441.00 million	$2.36	19.73

Core & Main has higher revenue and earnings than Rectitude.

Risk and Volatility

Rectitude has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Core & Main has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

94.2% of Core & Main shares are held by institutional investors. 1.5% of Core & Main shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Rectitude and Core & Main’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Core & Main	5.87%	26.17%	8.58%

Analyst Ratings

This is a breakdown of current recommendations for Rectitude and Core & Main, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	1	0	0	0	1.00
Core & Main	0	5	7	0	2.58

Core & Main has a consensus target price of $56.70, indicating a potential upside of 21.79%. Given Core & Main’s stronger consensus rating and higher probable upside, analysts clearly believe Core & Main is more favorable than Rectitude.

Summary

Core & Main beats Rectitude on 11 of the 12 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.