GMS (NYSE:GMS) and Huttig Building Products (NASDAQ:HBP) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Insider & Institutional Ownership
75.7% of GMS shares are owned by institutional investors. Comparatively, 51.9% of Huttig Building Products shares are owned by institutional investors. 4.9% of GMS shares are owned by insiders. Comparatively, 9.9% of Huttig Building Products shares are owned 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.
This is a summary of current ratings and recommmendations for GMS and Huttig Building Products, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Huttig Building Products||0||0||1||0||3.00|
GMS presently has a consensus price target of $37.00, indicating a potential upside of 105.10%. Huttig Building Products has a consensus price target of $9.75, indicating a potential upside of 167.12%. Given Huttig Building Products’ stronger consensus rating and higher possible upside, analysts clearly believe Huttig Building Products is more favorable than GMS.
Earnings and Valuation
This table compares GMS and Huttig Building Products’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GMS||$2.51 billion||0.30||$62.97 million||$2.01||8.98|
|Huttig Building Products||$753.20 million||0.13||-$7.10 million||N/A||N/A|
GMS has higher revenue and earnings than Huttig Building Products.
This table compares GMS and Huttig Building Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Huttig Building Products||-1.08%||-11.93%||-2.63%|
Volatility and Risk
GMS has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Huttig Building Products has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.
GMS beats Huttig Building Products on 9 of the 12 factors compared between the two stocks.
GMS Inc. distributes wallboards, suspended ceilings systems, and related construction products in the United States and Canada. The company offers wallboard products; and ceilings products, including suspended mineral fibers, soft fibers, and metal ceiling systems primarily used in offices, hotels, hospitals, retail facilities, schools, and various other commercial and institutional buildings. It also provides steel framing products, such as steel tracks, studs, and various other steel products used to frame the interior walls of a commercial or institutional building; and insulation, ready-mix joint compound, and various other interior construction products, as well as ancillary products comprising tools and safety products. In addition, the company distributes drywall, lumber, commercial, and residential building materials. As of April 30, 2018, it operated 214 branches across 42 states and the District of Columbia. The company also operates a network of approximately 240 distribution centers. The company was formerly known as GYP Holdings I Corp. and changed its name to GMS Inc. in July 2015. GMS Inc. was founded in 1971 and is headquartered in Tucker, Georgia.
About Huttig Building Products
Huttig Building Products, Inc., together with its subsidiaries, distributes millwork, building materials, and wood products for new residential construction, home improvement, remodeling, and repair work in the United States. It offers various millwork products, including exterior and interior doors, pre-hung and factory finished door units, windows, patio doors, mouldings, frames, stair parts, and columns under the Therma-Tru, Masonite, Woodgrain, HB&G, Simpson Door, Final Frame, BrasPine, Arauco, Windsor Windows, and Rogue Valley Door brands. The company also provides general building products, such as fasteners and connectors, roofing, siding, insulation, flashing, housewrap, decking, railings, and other miscellaneous building products under the Huttig-Grip, Louisiana Pacific, Simpson Strong-Tie, TimberTech, AZEK, RDI, GAF Roofing, Maibec, Knauf, GCP Technologies, Fiberon, Alpha Protech, MFM, Lomanco, and Fortifiber brands; and wood products comprising engineered wood products used in floor systems, wood panels, and lumber, as well as value-added services, such as floor system take-offs, cut-to-length packages and just-in-time, and cross-dock delivery under the Louisiana Pacific and Rosboro brands. It markets and sells its products to building materials dealers; national buying groups; home centers; and industrial users, including makers of manufactured homes through 27 wholesale distribution centers serving 41 states. Huttig Building Products, Inc. was founded in 1885 and is headquartered in St. Louis, Missouri.
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