Critical Analysis: Ashtead Group (OTCMKTS:ASHTY) versus SiteOne Landscape Supply (NYSE:SITE)

Ashtead Group (OTCMKTS:ASHTY) and SiteOne Landscape Supply (NYSE:SITE) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

0.8% of Ashtead Group shares are owned by institutional investors. 2.6% of SiteOne Landscape Supply shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Ashtead Group and SiteOne Landscape Supply’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ashtead Group	14.28%	21.32%	7.31%
SiteOne Landscape Supply	2.69%	7.80%	3.88%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ashtead Group and SiteOne Landscape Supply, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ashtead Group	0	2	1	1	2.75
SiteOne Landscape Supply	1	5	4	0	2.30

SiteOne Landscape Supply has a consensus price target of $147.00, indicating a potential upside of 1.63%. Given SiteOne Landscape Supply’s higher probable upside, analysts plainly believe SiteOne Landscape Supply is more favorable than Ashtead Group.

Risk & Volatility

Ashtead Group has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, SiteOne Landscape Supply has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ashtead Group and SiteOne Landscape Supply”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ashtead Group	$10.79 billion	2.90	$1.51 billion	$13.83	21.30
SiteOne Landscape Supply	$4.54 billion	1.42	$123.60 million	$2.74	52.79

Ashtead Group has higher revenue and earnings than SiteOne Landscape Supply. Ashtead Group is trading at a lower price-to-earnings ratio than SiteOne Landscape Supply, indicating that it is currently the more affordable of the two stocks.

Summary

Ashtead Group beats SiteOne Landscape Supply on 11 of the 15 factors compared between the two stocks.

About Ashtead Group

Ashtead Group plc, together with its subsidiaries, engages in the construction, industrial, and general equipment rental business in the United States, the United Kingdom, and Canada. It provides pumps, power generation, heating, cooling, scaffolding, traffic management, temporary flooring, trench shoring, and lifting services. The company offers its products and services for facilities maintenance and municipalities, such as office complexes, apartment complexes, government, hospitals, data centers, parks and recreation departments, schools and universities, shopping centers, pavement/kerb repairs, and golf course maintenance; construction of airports, highways and bridges, office buildings, data centers, schools and universities, shopping centers, residential, remodeling, manufacturing plants, and green energy plants; emergency response for fire, hurricanes, flooding, tornadoes, winter, storms, residential and health emergencies, alternative care facilities, points of distribution, and mobile testing facilities; and entertainment and special events, including national events, concerts, sporting events, film and telvision production, theme parks, festivals farmers' markets, local 5k runs, and cycle races. It operates 1,094 stores in the United States, 119 stores in Canada, and 185 stores in the United Kingdom under the Sunbelt Rentals brand. The company was founded in 1947 and is headquartered in London, the United Kingdom.

About SiteOne Landscape Supply

SiteOne Landscape Supply, Inc., together with its subsidiaries, engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides irrigation products, including controllers, valves, sprinkler heads, irrigation pipes, micro irrigation, and drip products; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species and cultivars; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specializes in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.