Head-To-Head Analysis: Wajax (OTCMKTS:WJXFF) versus Ferguson (NASDAQ:FERG)

Wajax (OTCMKTS:WJXFFGet Free Report) and Ferguson (NASDAQ:FERGGet Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Wajax and Ferguson, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wajax 0 0 0 0 N/A
Ferguson 1 1 6 0 2.63

Wajax currently has a consensus price target of $21.00, suggesting a potential downside of 10.99%. Ferguson has a consensus price target of $166.50, suggesting a potential downside of 24.72%. Given Wajax’s higher possible upside, equities analysts plainly believe Wajax is more favorable than Ferguson.

Insider & Institutional Ownership

32.4% of Wajax shares are held by institutional investors. 0.2% of Ferguson shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Wajax and Ferguson’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wajax N/A N/A N/A
Ferguson 6.00% 37.99% 12.18%

Dividends

Wajax pays an annual dividend of $2.40 per share and has a dividend yield of 10.2%. Ferguson pays an annual dividend of $3.16 per share and has a dividend yield of 1.4%. Wajax pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ferguson pays out 36.7% of its earnings in the form of a dividend. Ferguson has raised its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Wajax and Ferguson’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wajax N/A N/A N/A $2.48 9.51
Ferguson $29.73 billion 1.51 $1.89 billion $8.60 25.72

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

Summary

Ferguson beats Wajax on 10 of the 13 factors compared between the two stocks.

About Wajax

(Get Free Report)

Wajax Corporation provides sales, parts, and services to construction, forestry, mining, industrial and commercial, oil sands, transportation, metal processing, government, utilities, and oil and gas sectors. The company offers compact excavators, dump trucks, excavators, wheel loaders, and wheeled excavators; aerial devices, boom lifts, cranes, digger derricks, drills, lifts, and material and scissor lifts; marine, off and on highway engines, and transmissions; and feller bunchers, felling heads, flail debarkers, forwarders, grinders, harvesting heads, log loaders, mulchers, skidders, track and wheel harvesters, and woodchippers. It also provides bearings, bulk material handling, filtration, fluid handling, hydraulics, industrial electric motors and variable frequency drives, instrumentation, pneumatics, power transmissions, and PPE and safety supplies, as well as sealing, belting, lubricants, and hydraulic hoses; combination sweeper scrubbers, container handlers, electric ride scooters, end rider trucks, forklifts, goosenecks and ballast weights, order pickers, outdoor cleaning machines, pallet stackers and trucks, reach stackers, rider and walk behind sweepers, side loaders, utility vehicles, tow, terminal, and RoRo tractors; and equipment transport, filtration, fluid handling, mining excavators, rigid frame trucks, rope shovel, underground battery powered and drill jumbos, underground haul trucks and loaders, and underground utility trucks. In addition, the company offers power generation solutions; cages and partitions, guarding and barriers, lockers, cabinets, workstations, rack accessories and protections, racking, shelving, and storage platforms; storage system design, installation, and inspection services, as well as equipment rentals and engineered repair services. The company was formerly known as Wajax Income Fund and changed its name to Wajax Corporation in January 2011. Wajax Corporation was founded in 1858 and is headquartered in Mississauga, Canada.

About Ferguson

(Get Free Report)

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets. The company also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, fabrication, and others, as well as heating, ventilation, and air conditioning products under the Ferguson brand name. In addition, it supplies pipes, valves, fittings, plumbing supplies, water and wastewater treatment products, and refrigeration products under Wolseley brand name. Further, the company provides after-sales support comprising warranty, credit, project-based billing, returns, maintenance, repair, and operations support. It sells its products through wholesale distributors, supply houses, retail enterprises, and online. Ferguson plc was founded in 1953 and is headquartered in Wokingham, the United Kingdom.

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