Quanex Building Products Corporation (NX) & Valmont Industries (VMI) Head-To-Head Contrast
Valmont Industries (NYSE: VMI) and Quanex Building Products Corporation (NYSE:NX) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Valmont Industries pays an annual dividend of $1.50 per share and has a dividend yield of 0.9%. Quanex Building Products Corporation pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Valmont Industries pays out 17.9% of its earnings in the form of a dividend. Quanex Building Products Corporation pays out 42.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Valmont Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Valmont Industries has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Quanex Building Products Corporation has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Earnings and Valuation
This table compares Valmont Industries and Quanex Building Products Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Valmont Industries||$2.52 billion||1.46||$173.23 million||$8.38||19.42|
|Quanex Building Products Corporation||$928.18 million||0.78||-$1.85 million||$0.38||55.26|
Valmont Industries has higher revenue and earnings than Quanex Building Products Corporation. Valmont Industries is trading at a lower price-to-earnings ratio than Quanex Building Products Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Valmont Industries and Quanex Building Products Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Quanex Building Products Corporation||0||1||2||0||2.67|
Valmont Industries currently has a consensus price target of $176.00, suggesting a potential upside of 8.14%. Quanex Building Products Corporation has a consensus price target of $24.00, suggesting a potential upside of 14.29%. Given Quanex Building Products Corporation’s higher possible upside, analysts clearly believe Quanex Building Products Corporation is more favorable than Valmont Industries.
This table compares Valmont Industries and Quanex Building Products Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Quanex Building Products Corporation||1.52%||7.87%||3.81%|
Insider and Institutional Ownership
85.3% of Valmont Industries shares are owned by institutional investors. Comparatively, 99.6% of Quanex Building Products Corporation shares are owned by institutional investors. 3.3% of Valmont Industries shares are owned by insiders. Comparatively, 5.3% of Quanex Building Products Corporation shares are owned 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.
Valmont Industries beats Quanex Building Products Corporation on 12 of the 16 factors compared between the two stocks.
About Valmont Industries
Valmont Industries, Inc. is a producer of fabricated metal products, and steel, aluminum and composite pole, tower and other structures, and mechanized irrigation systems. The Company’s segments are Engineered Support Structures (ESS); Utility Support Structures; Energy and Mining; Coatings; Irrigation, and Other. The ESS segment manufactures steel, aluminum, and composite poles and structures. The Utility Support Structures Segment manufactures steel and concrete pole structures for electrical transmission, substation and distribution applications. The Energy and Mining Segment produces access systems, which are engineered structures and components that allow people to move safely in an industrial, infrastructure or commercial facility. The Coatings Segment consists of galvanizing, anodizing and powder coating services on a global basis. The Irrigation Segment manufactures and distributes mechanical irrigation equipment and related service parts under the Valley brand name.
About Quanex Building Products Corporation
Quanex Building Products Corporation manufactures components for original equipment manufacturers (OEM) in the building products industry. The Company’s components can be categorized as window and door (fenestration) components, and kitchen and bath cabinet components. The Company operates through three segments: North American Engineered Components (NA Engineered Components), which consists of four operating segments primarily focused on the fenestration market in North America manufacturing vinyl profiles, insulating glass (IG) spacers, screens and other fenestration components; European Engineered Components (EU Engineered Components), which consists of the United Kingdom-based vinyl extrusion business, manufacturing vinyl profiles and conservatories, and the European insulating glass business manufacturing IG spacers, and North American Cabinet Components (NA Cabinet Components), which consists of the North American cabinet door and components business.
Receive News & Ratings for Valmont Industries Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Valmont Industries Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.