Analyzing EACO (OTCMKTS:EACO) and J. W. Mays (NASDAQ:MAYS)

EACO (OTCMKTS:EACO) and J. W. Mays (NASDAQ:MAYS) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EACO and J. W. Mays, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EACO	0	0	0	0	0.00
J. W. Mays	1	0	0	0	1.00

Insider and Institutional Ownership

3.2% of J. W. Mays shares are held by institutional investors. 97.9% of EACO shares are held by insiders. Comparatively, 40.8% of J. W. Mays shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares EACO and J. W. Mays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EACO	7.80%	22.97%	15.82%
J. W. Mays	-2.24%	-0.94%	-0.56%

Volatility and Risk

EACO has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, J. W. Mays has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.

Valuation and Earnings

This table compares EACO and J. W. Mays”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EACO	$427.93 million	0.99	$32.29 million	$7.08	12.29
J. W. Mays	$22.47 million	3.56	-$140,000.00	($0.26)	-152.10

EACO has higher revenue and earnings than J. W. Mays. J. W. Mays is trading at a lower price-to-earnings ratio than EACO, indicating that it is currently the more affordable of the two stocks.

Summary

EACO beats J. W. Mays on 9 of the 12 factors compared between the two stocks.

About EACO

EACO Corporation, through its subsidiary, Bisco Industries, Inc., distributes and sells electronic components and fasteners in the United States, Asia, Canada, and internationally. It offers electronic components, such as spacers and standoffs, card guides and ejectors, component holders and fuses, circuit board connectors, and cable components, as well as various fasteners and hardware products. The company also provides customized services and solutions for various production needs, including special packaging, bin stocking, kitting and assembly, bar coding, electronic requisitioning, integrated supply programs, and others. It supplies parts used in the manufacture of products to a range of industries, including aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment, and marine. The company sells its products primarily to the original equipment manufacturers through its sales representatives and distribution centers. EACO Corporation was founded in 1973 and is headquartered in Anaheim, California.

About J. W. Mays

J.W. Mays, Inc. owns, operates, and leases commercial real estate properties in United States. The company's properties are located in Brooklyn, Jamaica, Fishkill, Levittown, and Massapequa of New York; and Circleville of Ohio. The company was founded in 1924 and is based in Brooklyn, New York.