Analyzing Core & Main (CNM) & Its Peers

Core & Main (NYSE:CNM) is one of 159 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it contrast to its peers? We will compare Core & Main to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.

Earnings & Valuation

This table compares Core & Main and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Core & Main	$7.65 billion	$441.00 million	19.50
Core & Main Competitors	$6.49 billion	$364.19 million	24.96

Core & Main has higher revenue and earnings than its peers. Core & Main is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Core & Main has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Core & Main’s peers have a beta of 1.28, suggesting that their average stock price is 28% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Core & Main and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	5	7	0	2.58
Core & Main Competitors	1410	4871	6701	229	2.44

Core & Main presently has a consensus target price of $56.70, suggesting a potential upside of 23.24%. As a group, “Trading Companies & Distributors” companies have a potential upside of 5.12%. Given Core & Main’s stronger consensus rating and higher probable upside, research analysts clearly believe Core & Main is more favorable than its peers.

Insider and Institutional Ownership

94.2% of Core & Main shares are owned by institutional investors. Comparatively, 50.9% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 1.5% of Core & Main shares are owned by insiders. Comparatively, 16.7% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.87%	26.17%	8.58%
Core & Main Competitors	2.92%	-34.03%	3.55%

Summary

Core & Main beats its peers on 9 of the 13 factors compared.

Core & Main Company Profile

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.