Ferguson (NYSE:FERG – Get Free Report) and Taylor Devices (NASDAQ:TAYD – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Ferguson and Taylor Devices, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ferguson | 0 | 7 | 12 | 2 | 2.76 |
| Taylor Devices | 0 | 1 | 0 | 0 | 2.00 |
Ferguson presently has a consensus target price of $250.47, indicating a potential upside of 11.12%. Given Ferguson’s stronger consensus rating and higher possible upside, analysts clearly believe Ferguson is more favorable than Taylor Devices.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ferguson | $30.76 billion | 1.43 | $1.86 billion | $9.90 | 22.77 |
| Taylor Devices | $44.59 million | 4.45 | $9.41 million | $2.85 | 22.11 |
Ferguson has higher revenue and earnings than Taylor Devices. Taylor Devices is trading at a lower price-to-earnings ratio than Ferguson, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Ferguson has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Taylor Devices has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Insider & Institutional Ownership
82.0% of Ferguson shares are held by institutional investors. Comparatively, 17.6% of Taylor Devices shares are held by institutional investors. 0.2% of Ferguson shares are held by insiders. Comparatively, 8.9% of Taylor Devices shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Ferguson and Taylor Devices’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ferguson | 6.28% | 35.73% | 11.82% |
| Taylor Devices | 20.04% | 14.90% | 13.00% |
Summary
Ferguson beats Taylor Devices on 11 of the 15 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 Taylor Devices
Taylor Devices, Inc. engages in design, development, manufacture, and marketing of shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in the United States, Asia, and internationally. Its products include seismic dampers that are designed to mitigate the effects of earthquakes on structures; Fluidicshoks, which are compact shock absorbers primarily used in defense, aerospace, and commercial industries; and crane and industrial buffers, which are larger versions of the Fluidicshoks for industrial application on cranes and crane trolleys, truck docks, ladle and ingot cars, ore trolleys, and train car stops. The company's products also comprise self-adjusting shock absorbers that include versions of Fluidicshoks, and crane and industrial buffers, which automatically adjust to various impact conditions and are designed for high cycle application primarily in the heavy industry; liquid die springs that are used as component parts of machinery and equipment used in the manufacture of tools and dies; vibration dampers, which are primarily used by aerospace and defense industries to control the response of electronics and optical systems subjected to air, ship, or spacecraft vibration; machined springs used in the aerospace applications; and custom actuators for special aerospace and defense applications. It markets its products through a network of sales representatives and distributors. The company was incorporated in 1955 and is headquartered in North Tonawanda, New York.
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