Head-To-Head Survey: Simpson Manufacturing (NYSE:SSD) & Jewett-Cameron Trading (NASDAQ:JCTC)

Jewett-Cameron Trading (NASDAQ:JCTC) and Simpson Manufacturing (NYSE:SSD) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jewett-Cameron Trading	-20.94%	-38.35%	-29.29%
Simpson Manufacturing	15.62%	18.23%	12.30%

Volatility and Risk

Jewett-Cameron Trading has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Simpson Manufacturing has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares Jewett-Cameron Trading and Simpson Manufacturing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jewett-Cameron Trading	$41.30 million	0.24	-$4.13 million	($2.35)	-1.21
Simpson Manufacturing	$2.33 billion	3.45	$345.08 million	$9.25	21.14

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

Analyst Ratings

This is a summary of current recommendations and price targets for Jewett-Cameron Trading and Simpson Manufacturing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jewett-Cameron Trading	1	0	0	0	1.00
Simpson Manufacturing	1	2	3	0	2.33

Simpson Manufacturing has a consensus target price of $207.00, suggesting a potential upside of 5.88%. Given Simpson Manufacturing’s stronger consensus rating and higher possible upside, analysts plainly believe Simpson Manufacturing is more favorable than Jewett-Cameron Trading.

Insider and Institutional Ownership

26.1% of Jewett-Cameron Trading shares are held by institutional investors. Comparatively, 93.7% of Simpson Manufacturing shares are held by institutional investors. 1.3% of Jewett-Cameron Trading shares are held by company insiders. Comparatively, 0.3% of Simpson Manufacturing shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Simpson Manufacturing beats Jewett-Cameron Trading on 12 of the 13 factors compared between the two stocks.

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.

About Simpson Manufacturing

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products. It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, infrastructure construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Italy, Romania, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. The company was founded in 1956 and is headquartered in Pleasanton, California.