Analyzing Core & Main (CNM) & The Competition

Core & Main (NYSE:CNM) is one of 157 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it weigh in compared to its competitors? We will compare Core & Main to similar businesses based on the strength of its profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Core & Main has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Core & Main’s competitors have a beta of 1.32, indicating that their average share price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Core & Main and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	6	8	0	2.57
Core & Main Competitors	1470	4924	6746	242	2.43

Core & Main presently has a consensus price target of $54.09, indicating a potential upside of 19.88%. As a group, “Trading Companies & Distributors” companies have a potential upside of 7.86%. Given Core & Main’s stronger consensus rating and higher possible upside, research analysts plainly believe Core & Main is more favorable than its competitors.

Profitability

This table compares Core & Main and its competitors’ 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%
Core & Main Competitors	1.10%	-33.72%	3.55%

Institutional and Insider Ownership

94.2% of Core & Main shares are owned by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 1.5% of Core & Main shares are owned by insiders. Comparatively, 17.3% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Core & Main and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Core & Main	$7.70 billion	$441.00 million	18.57
Core & Main Competitors	$6.82 billion	$363.16 million	34.06

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

Summary

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

About Core & Main

Core & Main, Inc. is a distributor of products and services used in water, wastewater, storm drainage, and fire protection infrastructure. Its customers include municipalities, water utilities, contractors, and other commercial and industrial organizations. The company offers products such as pipe, valves, fittings, hydrants, meters, and related supplies. It also provides services supporting infrastructure projects, including product fabrication and technical assistance. Based in St. Louis, Missouri, Core & Main serves customers across the United States through a network of branches.