Head-To-Head Analysis: PGT (PGTI) and Patrick Industries (PATK)

PGT (NYSE: PGTI) and Patrick Industries (NASDAQ:PATK) are both small-cap cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

This table compares PGT and Patrick Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PGT 4.87% 19.02% 6.02%
Patrick Industries 4.73% 24.60% 11.00%

Risk & Volatility

PGT has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Patrick Industries has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Valuation & Earnings

This table compares PGT and Patrick Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PGT $458.55 million 1.75 $23.74 million $0.46 35.11
Patrick Industries $1.22 billion 0.90 $55.57 million $4.43 14.83

Patrick Industries has higher revenue and earnings than PGT. Patrick Industries is trading at a lower price-to-earnings ratio than PGT, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for PGT and Patrick Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PGT 0 2 5 0 2.71
Patrick Industries 0 1 2 0 2.67

PGT presently has a consensus price target of $16.67, indicating a potential upside of 3.20%. Patrick Industries has a consensus price target of $53.78, indicating a potential downside of 18.15%. Given PGT’s stronger consensus rating and higher probable upside, equities research analysts clearly believe PGT is more favorable than Patrick Industries.

Institutional & Insider Ownership

92.4% of PGT shares are held by institutional investors. Comparatively, 89.3% of Patrick Industries shares are held by institutional investors. 6.1% of PGT shares are held by insiders. Comparatively, 5.2% of Patrick Industries 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.

Summary

PGT beats Patrick Industries on 9 of the 14 factors compared between the two stocks.

PGT Company Profile

PGT Innovations, Inc., formerly PGT, Inc., is a manufacturer of impact-resistant windows and doors. The Company’s brands include CGI, PGT Windows + Doors and WinDoor. CGI serves residential and commercial markets in both new and existing construction. CGI manufacturing and delivery facilities are based in Miami, Florida. PGT Custom Windows + Doors is a manufacturer and supplier of residential impact-resistant glass products. The Company’s manufacturing, glass plant, and delivery facilities are located in North Venice, Florida. WinDoor serves five-star resorts, luxury high-rise condominiums and mansions along the United States coastline. WinDoor’s aluminum and vinyl products come in an array of expansive sizes, custom colors, and configurations. WinDoor manufacturing and delivery facilities are based in Orlando, Florida.

Patrick Industries Company Profile

Patrick Industries, Inc. is a manufacturer of component products and distributor of building products and materials for the recreational vehicle (RV) and manufactured housing (MH) industrial markets for customers throughout the United States and Canada. In addition, it is a supplier to certain other industrial markets, such as kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets. The Company’s segments include Manufacturing and Distribution. It manufactures a range of products, which include decorative vinyl and paper laminated panels, solid surface, granite and quartz countertops, fabricated aluminum products, wrapped vinyl, paper and hardwood profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass and plastic component products including front and rear caps and marine helms, interior passage doors, RV painting, and slotwall panels and components, among others.

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