Reviewing Smith-Midland (NASDAQ:SMID) & James Hardie Industries (NYSE:JHX)

James Hardie Industries (NYSE:JHXGet Free Report) and Smith-Midland (NASDAQ:SMIDGet Free Report) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Institutional & Insider Ownership

1.5% of James Hardie Industries shares are held by institutional investors. Comparatively, 40.7% of Smith-Midland shares are held by institutional investors. 5.0% of Smith-Midland shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for James Hardie Industries and Smith-Midland, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
James Hardie Industries 1 2 2 0 2.20
Smith-Midland 0 0 0 0 N/A

James Hardie Industries currently has a consensus price target of $29.80, suggesting a potential upside of 0.98%. Given James Hardie Industries’ higher possible upside, research analysts clearly believe James Hardie Industries is more favorable than Smith-Midland.

Risk & Volatility

James Hardie Industries has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Smith-Midland has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares James Hardie Industries and Smith-Midland’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
James Hardie Industries 13.58% 39.32% 14.38%
Smith-Midland 1.90% 3.03% 1.82%

Earnings & Valuation

This table compares James Hardie Industries and Smith-Midland’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
James Hardie Industries $3.73 billion 3.48 $512.00 million $1.14 25.89
Smith-Midland $52.54 million 1.90 $800,000.00 $0.19 100.05

James Hardie Industries has higher revenue and earnings than Smith-Midland. James Hardie Industries is trading at a lower price-to-earnings ratio than Smith-Midland, indicating that it is currently the more affordable of the two stocks.

Summary

James Hardie Industries beats Smith-Midland on 10 of the 13 factors compared between the two stocks.

About James Hardie Industries

(Get Free Report)

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.

About Smith-Midland

(Get Free Report)

Smith-Midland Corporation, through its subsidiaries, invents, develops, manufactures, markets, leases, licenses, sells, and installs precast concrete products and systems primarily for use in the construction, highway, utilities, and farming industries. It offers SlenderWall, a patented, lightweight, energy efficient concrete and steel exterior wall panel for use in building construction; Sierra Wall that provides sound and sight barrier for use alongside highways around residential, industrial, and commercial properties; J-J Hooks highway safety barriers for use on roadways to separate lanes of traffic in construction work zone or traffic control purposes; and Easi-Set precast building and Easi-Span expandable precast buildings for use in housing communications operations, traffic control systems, and mechanical and electrical stations. The company also provides Easi-Set utility vaults for house equipment, such as cable, telephone, or traffic signal equipment, and for underground storage, as well as custom-built utility vaults for special needs; SoftSound soundwall panels to absorb highway noise; Beach Prisms, an erosion control module for seawalls and jetties; and H2Out secondary drainage systems for panelized exterior cladding. In addition, it licenses its proprietary products in the United States, Canada, Australia, Belgium, Mexico, New Zealand, and Trinidad. The company markets its products through in-house sales force and independent sales representatives to contractors performing public and private construction contracts, such as construction of commercial buildings, public and private roads and highways, airports, and municipal utilities; and federal, state, and local transportation authorities. Smith-Midland Corporation was founded in 1960 and is based in Midland, Virginia.

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