Critical Survey: Ferguson (NYSE:FERG) vs. Morgan Advanced Materials (OTCMKTS:MCRUF)

Ferguson (NYSE:FERG) and Morgan Advanced Materials (OTCMKTS:MCRUF) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Risk and Volatility

Ferguson has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Morgan Advanced Materials has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Ferguson and Morgan Advanced Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferguson	5.32%	34.02%	11.28%
Morgan Advanced Materials	N/A	N/A	N/A

Valuation and Earnings

This table compares Ferguson and Morgan Advanced Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferguson	$29.64 billion	1.47	$1.74 billion	$8.02	27.46
Morgan Advanced Materials	$1.41 billion	N/A	$75.14 million	N/A	N/A

Ferguson has higher revenue and earnings than Morgan Advanced Materials.

Insider and Institutional Ownership

82.0% of Ferguson shares are owned by institutional investors. 0.2% of Ferguson shares are owned by 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Ferguson and Morgan Advanced Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferguson	0	1	0	1	3.00
Morgan Advanced Materials	0	1	0	0	2.00

Summary

Ferguson beats Morgan Advanced Materials on 10 of the 10 factors compared between the two stocks.

About Ferguson

Ferguson Enterprises Inc. distributes plumbing and heating products in North America. The company provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, as well as heating, ventilation, and air conditioning (HVAC) to residential and non-residential customers. It also supplies specialist water and wastewater treatment products to residential, commercial, and infrastructure contractors, as well as supplies pipe, valves, and fittings solutions to industrial customers. In addition, it offers customized solutions, such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation, and project management services, as well as after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, and repair and operations support. The company sells its products through a network of distribution centers, branches, counter service and specialist sales associates, showroom consultants, and e-commerce channels. Ferguson Enterprises Inc. was founded in 1953 and is headquartered in Newport News, Virginia.

About Morgan Advanced Materials

Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It serves customers in the industrial, transportation, petrochemical and chemical, energy, semiconductor and electronics, healthcare, and security and defense markets. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.