Head-To-Head Analysis: Patrick Industries (PATK) versus PGT (PGTI)

Patrick Industries (NASDAQ: PATK) and PGT (NYSE:PGTI) are both small-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

89.3% of Patrick Industries shares are owned by institutional investors. Comparatively, 92.4% of PGT shares are owned by institutional investors. 5.2% of Patrick Industries shares are owned by insiders. Comparatively, 6.1% of PGT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Patrick Industries has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, PGT has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Patrick Industries and PGT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patrick Industries 0 1 2 0 2.67
PGT 0 2 5 0 2.71

Patrick Industries currently has a consensus price target of $80.67, suggesting a potential downside of 17.69%. PGT has a consensus price target of $16.67, suggesting a potential upside of 2.56%. Given PGT’s stronger consensus rating and higher possible upside, analysts clearly believe PGT is more favorable than Patrick Industries.

Earnings & Valuation

This table compares Patrick Industries and PGT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Patrick Industries $1.22 billion 1.35 $55.57 million $4.37 22.43
PGT $458.55 million 1.76 $23.74 million $0.46 35.33

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

Profitability

This table compares Patrick Industries and PGT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patrick Industries 4.73% 24.60% 11.00%
PGT 4.87% 19.02% 6.02%

Summary

PGT beats Patrick Industries on 9 of the 14 factors compared between the two stocks.

About Patrick Industries

Patrick Industries, Inc. is a manufacturer of component products and distributor of building products and materials for the recreational vehicle (RV) and manufactured housing (MH) industrial markets for customers throughout the United States and Canada. In addition, it is a supplier to certain other industrial markets, such as kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets. The Company’s segments include Manufacturing and Distribution. It manufactures a range of products, which include decorative vinyl and paper laminated panels, solid surface, granite and quartz countertops, fabricated aluminum products, wrapped vinyl, paper and hardwood profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass and plastic component products including front and rear caps and marine helms, interior passage doors, RV painting, and slotwall panels and components, among others.

About PGT

PGT Innovations, Inc., formerly PGT, Inc., is a manufacturer of impact-resistant windows and doors. The Company’s brands include CGI, PGT Windows + Doors and WinDoor. CGI serves residential and commercial markets in both new and existing construction. CGI manufacturing and delivery facilities are based in Miami, Florida. PGT Custom Windows + Doors is a manufacturer and supplier of residential impact-resistant glass products. The Company’s manufacturing, glass plant, and delivery facilities are located in North Venice, Florida. WinDoor serves five-star resorts, luxury high-rise condominiums and mansions along the United States coastline. WinDoor’s aluminum and vinyl products come in an array of expansive sizes, custom colors, and configurations. WinDoor manufacturing and delivery facilities are based in Orlando, Florida.

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