Sandvik (OTCMKTS:SDVKY – Get Free Report) and Core & Main (NYSE:CNM – Get Free Report) are both large-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Insider and Institutional Ownership
0.7% of Sandvik shares are owned by institutional investors. Comparatively, 94.2% of Core & Main shares are owned by institutional investors. 3.5% of Core & Main shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Sandvik and Core & Main”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Sandvik | $11.62 billion | 2.66 | $1.16 billion | $1.11 | 22.22 |
Core & Main | $7.44 billion | 1.64 | $411.00 million | $2.15 | 28.76 |
Sandvik has higher revenue and earnings than Core & Main. Sandvik is trading at a lower price-to-earnings ratio than Core & Main, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Sandvik has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Core & Main has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Sandvik and Core & Main, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Sandvik | 1 | 1 | 2 | 1 | 2.60 |
Core & Main | 1 | 3 | 7 | 0 | 2.55 |
Core & Main has a consensus price target of $60.00, indicating a potential downside of 2.98%. Given Core & Main’s higher possible upside, analysts plainly believe Core & Main is more favorable than Sandvik.
Profitability
This table compares Sandvik and Core & Main’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Sandvik | 11.89% | 16.66% | 8.62% |
Core & Main | 5.47% | 23.55% | 6.80% |
Summary
Sandvik beats Core & Main on 8 of the 15 factors compared between the two stocks.
About Sandvik
Sandvik AB (publ), an engineering company, provides products and solutions for mining and rock excavation, metal cutting, and materials technology worldwide. The company offers mining and rock excavation equipment, including drill rigs and bolters, underground loaders and trucks, mechanical cutting equipment, rock tools and rock drills, and mining automation; rock processing equipment, such as crushers, screens, hydraulic breakers, demolition tools, and breaker booms. It also provides metal-cutting tools and tooling systems, and digital solutions and software; metal powder for additive manufacturing, and components made from controlled expansion alloys; and tungsten powders, as well as recycling services of secondary tungsten raw materials. The company serves aerospace, automotive, energy, general engineering, infrastructure, and mining industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.
About Core & Main
Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.
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