Comparing Advanced Drainage Systems (NYSE:WMS) and American Biltrite (OTCMKTS:ABLT)

Advanced Drainage Systems (NYSE:WMS) and American Biltrite (OTCMKTS:ABLT) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Valuation and Earnings

This table compares Advanced Drainage Systems and American Biltrite”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Drainage Systems	$3.05 billion	3.47	$426.46 million	$5.44	25.41
American Biltrite	$188.74 million	0.01	-$2.64 million	($229.80)	-0.31

Advanced Drainage Systems has higher revenue and earnings than American Biltrite. American Biltrite is trading at a lower price-to-earnings ratio than Advanced Drainage Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Advanced Drainage Systems and American Biltrite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Drainage Systems	13.98%	26.63%	11.80%
American Biltrite	-4.16%	-34.23%	-6.13%

Risk and Volatility

Advanced Drainage Systems has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, American Biltrite has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500.

Institutional & Insider Ownership

89.8% of Advanced Drainage Systems shares are held by institutional investors. 1.7% of Advanced Drainage Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Advanced Drainage Systems and American Biltrite, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Drainage Systems	0	1	7	0	2.88
American Biltrite	0	0	0	0	0.00

Advanced Drainage Systems currently has a consensus target price of $185.75, indicating a potential upside of 34.36%. Given Advanced Drainage Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Advanced Drainage Systems is more favorable than American Biltrite.

Summary

Advanced Drainage Systems beats American Biltrite on 14 of the 14 factors compared between the two stocks.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.

About American Biltrite

American Biltrite Inc., together with its subsidiaries, provides tape, jewelry, flooring, and rubber products worldwide. The company produces and offers pressure sensitive tapes, films, and protective sheeting under the American Biltrite and Ideal brands, which are used in various markets, such as automotive and transportation; construction; shoe/footwear; graphic arts, print, and signage; and various other industrial and consumer applications. It also manufactures and distributes commercial flooring primarily for healthcare, educational, and institutional sectors; and performance sheet rubber in North America, as well as designs and supplies fashion jewelry to department stores under the brands of Guess, T Tahari, Robert Rose, Berry, and Jessica McClintock. The company sells its tape products through sales organizations, distributors, and select manufacturers’ representatives. American Biltrite Inc. was founded in 1908 and is based in Wellesley Hills, Massachusetts.