Head to Head Review: GMS (NYSE:GMS) vs. Jewett-Cameron Trading (NASDAQ:JCTC)

GMS (NYSE:GMS) and Jewett-Cameron Trading (NASDAQ:JCTC) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares GMS and Jewett-Cameron Trading’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GMS	2.09%	16.97%	6.28%
Jewett-Cameron Trading	-4.72%	-8.70%	-7.50%

Earnings and Valuation

This table compares GMS and Jewett-Cameron Trading”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GMS	$5.51 billion	0.76	$115.47 million	$2.89	37.96
Jewett-Cameron Trading	$47.15 million	0.27	$720,000.00	($0.58)	-6.14

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

Institutional and Insider Ownership

95.3% of GMS shares are owned by institutional investors. Comparatively, 26.1% of Jewett-Cameron Trading shares are owned by institutional investors. 1.9% of GMS shares are owned by company insiders. Comparatively, 1.3% of Jewett-Cameron Trading 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.

Risk and Volatility

GMS has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for GMS and Jewett-Cameron Trading, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GMS	0	9	0	0	2.00
Jewett-Cameron Trading	0	0	0	0	0.00

GMS presently has a consensus target price of $101.11, indicating a potential downside of 7.84%. Given GMS’s stronger consensus rating and higher probable upside, research analysts plainly believe GMS is more favorable than Jewett-Cameron Trading.

Summary

GMS beats Jewett-Cameron Trading on 13 of the 13 factors compared between the two stocks.

About GMS

GMS Inc. distributes wallboard, ceilings, steel framing and complementary construction products in the United States and Canada. The company offers ceilings products, including suspended mineral fibers, soft fibers, and metal ceiling systems primarily used in offices, hotels, hospitals, retail facilities, schools, and various other commercial and institutional buildings. It also provides steel framing products, such as steel tracks, studs, and various other steel products used to frame the interior walls of a commercial or institutional building, as well as ancillary products comprising tools, fasteners, insulation, EIFS and stucco, lumber and other wood products, ready-mix joint compound, and safety products. In addition, the company distributes a wallboard, ceilings, steel framing, and construction products, as well as commercial and residential building materials. It also operates through tool sales, rental, and service centers, as well as network of distribution centers. The company serves professional contractors and homebuilders. GMS Inc. was founded in 1971 and is headquartered in Tucker, Georgia.

About Jewett-Cameron Trading

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.