SiteOne Landscape Supply (NYSE: SITE) and Lamb Weston Holdings (NYSE:LW) are both mid-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares SiteOne Landscape Supply and Lamb Weston Holdings’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SiteOne Landscape Supply||$1.75 billion||1.12||$132.60 million||$1.03||47.90|
|Lamb Weston Holdings||$3.17 billion||2.09||$654.20 million||N/A||N/A|
Lamb Weston Holdings has higher revenue and earnings than SiteOne Landscape Supply.
Lamb Weston Holdings pays an annual dividend of $0.75 per share and has a dividend yield of 1.7%. SiteOne Landscape Supply does not pay a dividend.
Insider and Institutional Ownership
90.8% of SiteOne Landscape Supply shares are held by institutional investors. Comparatively, 77.1% of Lamb Weston Holdings shares are held by institutional investors. 4.0% of SiteOne Landscape Supply shares are held by company insiders. Comparatively, 0.3% of Lamb Weston Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for SiteOne Landscape Supply and Lamb Weston Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SiteOne Landscape Supply||0||2||2||0||2.50|
|Lamb Weston Holdings||0||3||4||1||2.75|
SiteOne Landscape Supply presently has a consensus target price of $55.00, suggesting a potential upside of 11.47%. Lamb Weston Holdings has a consensus target price of $46.00, suggesting a potential upside of 1.61%. Given SiteOne Landscape Supply’s higher possible upside, equities research analysts clearly believe SiteOne Landscape Supply is more favorable than Lamb Weston Holdings.
This table compares SiteOne Landscape Supply and Lamb Weston Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SiteOne Landscape Supply||2.46%||27.37%||4.90%|
|Lamb Weston Holdings||N/A||N/A||N/A|
Lamb Weston Holdings beats SiteOne Landscape Supply on 7 of the 13 factors compared between the two stocks.
SiteOne Landscape Supply Company Profile
SiteOne Landscape Supply, Inc. is a national wholesale distributor of landscape supplies in the United States and Canada. The Company is a supplier of irrigation, landscape lighting, hardscapes, lawn care supplies, nursery stock, and landscape accessories to green industry professionals. As of October 2, 2016, the Company had over 450 stores. The Company offers a selection of fertilizer and control products, such as herbicides, irrigation supplies, landscape accessories, nursery goods, hardscapes, including pavers, natural stones and blocks, and outdoor lighting products. The Company’s customers are primarily residential and commercial landscape professionals specializing in the designing, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces. The Company offers various products, such as spreader settings, LESCO equipment specification sheets, golf course supplies, seed: golf and greentech specification binder.
Lamb Weston Holdings Company Profile
Lamb Weston Holdings, Inc. (Lamb Weston), is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the world. The Company’s segments include Global, Foodservice, Retail and Other. The Global segment includes operations associated with Lamb Weston’s business with large chain restaurant customers, whether those results are generated in the United States or abroad, as well as operations associated with retail and foodservice customers located outside of the United States and Canada. The Foodservice segment includes sales to a line of foodservice distribution customers in the United States and Canada. The Retail reporting segment includes sales to grocery, mass, club, and specialty retailers primarily in the United States. The Other segment includes the operations from Lamb Weston’s frozen vegetable business. It also includes the operations from Lamb Weston’s dairy business.
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