Reviewing GATX (NYSE:GATX) and Core & Main (NYSE:CNM)

Core & Main (NYSE:CNM) and GATX (NYSE:GATX) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Core & Main and GATX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core & Main	$7.65 billion	1.03	$441.00 million	$2.43	17.03
GATX	$2.05 billion	2.82	$333.30 million	$10.10	16.26

Core & Main has higher revenue and earnings than GATX. GATX is trading at a lower price-to-earnings ratio than Core & Main, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

94.2% of Core & Main shares are owned by institutional investors. Comparatively, 93.1% of GATX shares are owned by institutional investors. 1.5% of Core & Main shares are owned by insiders. Comparatively, 1.9% of GATX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Core & Main has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, GATX has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.96%	25.98%	8.53%
GATX	17.94%	10.43%	2.12%

Analyst Ratings

This is a summary of recent ratings and price targets for Core & Main and GATX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	1	5	7	0	2.46
GATX	0	0	4	0	3.00

Core & Main presently has a consensus target price of $54.40, suggesting a potential upside of 31.43%. GATX has a consensus target price of $219.33, suggesting a potential upside of 33.58%. Given GATX’s stronger consensus rating and higher possible upside, analysts plainly believe GATX is more favorable than Core & Main.

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.

About GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.