DMC Global (NASDAQ:BOOM – Get Free Report) and Ashtead Group (OTCMKTS:ASHTY – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Risk and Volatility
DMC Global has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Ashtead Group has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.
Institutional and Insider Ownership
77.6% of DMC Global shares are held by institutional investors. Comparatively, 0.8% of Ashtead Group shares are held by institutional investors. 3.4% of DMC Global shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
DMC Global | 0 | 2 | 0 | 0 | 2.00 |
Ashtead Group | 0 | 2 | 1 | 1 | 2.75 |
DMC Global presently has a consensus target price of $8.50, suggesting a potential upside of 29.77%. Given DMC Global’s higher possible upside, equities research analysts clearly believe DMC Global is more favorable than Ashtead Group.
Valuation & Earnings
This table compares DMC Global and Ashtead Group”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
DMC Global | $642.85 million | 0.21 | -$94.45 million | ($8.64) | -0.76 |
Ashtead Group | $10.79 billion | 2.92 | $1.51 billion | $13.83 | 21.43 |
Ashtead Group has higher revenue and earnings than DMC Global. DMC Global is trading at a lower price-to-earnings ratio than Ashtead Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DMC Global and Ashtead Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
DMC Global | -17.54% | -1.27% | -0.48% |
Ashtead Group | 14.28% | 21.32% | 7.31% |
Summary
Ashtead Group beats DMC Global on 12 of the 15 factors compared between the two stocks.
About DMC Global
DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.
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.
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