Trex (NYSE:TREX) & Janus International Group (NYSE:JBI) Financial Contrast

Janus International Group (NYSE:JBI) and Trex (NYSE:TREX) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Earnings and Valuation

This table compares Janus International Group and Trex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janus International Group	$884.20 million	0.67	$53.80 million	$0.24	18.02
Trex	$1.17 billion	4.35	$190.41 million	$1.68	29.28

Trex has higher revenue and earnings than Janus International Group. Janus International Group is trading at a lower price-to-earnings ratio than Trex, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Janus International Group and Trex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Janus International Group	3.68%	11.27%	4.88%
Trex	14.68%	18.03%	11.76%

Volatility & Risk

Janus International Group has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Trex has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Insider & Institutional Ownership

88.8% of Janus International Group shares are owned by institutional investors. Comparatively, 96.0% of Trex shares are owned by institutional investors. 4.7% of Janus International Group shares are owned by insiders. Comparatively, 0.9% of Trex shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Janus International Group and Trex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janus International Group	1	2	1	0	2.00
Trex	2	8	13	0	2.48

Janus International Group currently has a consensus target price of $7.30, indicating a potential upside of 68.79%. Trex has a consensus target price of $50.48, indicating a potential upside of 2.61%. Given Janus International Group’s higher possible upside, analysts clearly believe Janus International Group is more favorable than Trex.

Summary

Trex beats Janus International Group on 12 of the 14 factors compared between the two stocks.

About Janus International Group

Janus International Group, Inc. manufacturers and supplies turn-key self-storage, and commercial and industrial building solutions in North America and internationally. The company offers roll up and swing doors, hallway systems, relocatable storage moveable additional storage structures units, and other solutions. It also provides facility and door automation and access control technologies; and Noke smart entry system. The company was founded in 2002 and is headquartered in Temple, Georgia.

About Trex

Trex Company, Inc. manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products that are used in Trex decking products and other decking materials; Trex Select Railing products for a simple clean finished look; Trex Enhance Railing system; Trex Signature aluminum railing for a contemporary look; and Trex Select T-Rail railing products. In addition, it offers Trex Seclusions, a fencing product that includes structural posts, bottom and top rails, pickets, and decorative post caps. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-alternative composite decking; Trex SpiralStairs and structural steel posts; and Trex Outdoor Kitchens, cabinetry, and Storage products. It sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe’s stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.