Pool (NASDAQ:POOL – Get Free Report) and ATC Venture Group (OTCMKTS:ATCV – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Profitability
This table compares Pool and ATC Venture Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pool | 7.57% | 32.37% | 10.93% |
| ATC Venture Group | N/A | N/A | N/A |
Insider and Institutional Ownership
99.0% of Pool shares are held by institutional investors. 3.0% of Pool shares are held by insiders. Comparatively, 49.9% of ATC Venture Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pool | $5.29 billion | 1.41 | $406.40 million | $10.87 | 18.89 |
| ATC Venture Group | N/A | N/A | N/A | N/A | N/A |
Pool has higher revenue and earnings than ATC Venture Group.
Analyst Ratings
This is a summary of current ratings and price targets for Pool and ATC Venture Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pool | 2 | 6 | 4 | 0 | 2.17 |
| ATC Venture Group | 0 | 0 | 0 | 0 | 0.00 |
Pool presently has a consensus target price of $261.38, suggesting a potential upside of 27.28%. Given Pool’s stronger consensus rating and higher possible upside, analysts plainly believe Pool is more favorable than ATC Venture Group.
Volatility and Risk
Pool has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, ATC Venture Group has a beta of 8.07, suggesting that its stock price is 707% more volatile than the S&P 500.
Summary
Pool beats ATC Venture Group on 8 of the 10 factors compared between the two stocks.
About Pool
Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.
About ATC Venture Group
ATC Venture Group Inc., through its subsidiary, Simonsen Iron Works Inc., engages in the design, manufacture, and assembly of an array of parts for original equipment manufacturers and other customers. The company was formerly known as Cycle Country Accessories Corp. and changed its name to ATC Venture Group Inc. in January 2012. ATC Venture Group Inc. was incorporated in 1906 and is based in Minnetonka, Minnesota.
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