Critical Review: Latham Group (NASDAQ:SWIM) & CRH (NYSE:CRH)

Latham Group (NASDAQ:SWIM) and CRH (NYSE:CRH) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Institutional and Insider Ownership

84.0% of Latham Group shares are held by institutional investors. Comparatively, 62.5% of CRH shares are held by institutional investors. 8.6% of Latham Group shares are held by insiders. Comparatively, 0.1% of CRH shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Latham Group and CRH’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latham Group	-2.07%	-2.80%	-1.34%
CRH	9.30%	16.25%	6.94%

Earnings and Valuation

This table compares Latham Group and CRH”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latham Group	$508.52 million	1.52	-$17.86 million	($0.10)	-66.30
CRH	$35.57 billion	2.28	$3.46 billion	$5.02	24.10

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Latham Group and CRH, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latham Group	2	1	0	0	1.33
CRH	0	3	14	1	2.89

Latham Group presently has a consensus price target of $7.19, suggesting a potential upside of 8.41%. CRH has a consensus price target of $136.20, suggesting a potential upside of 12.59%. Given CRH’s stronger consensus rating and higher possible upside, analysts plainly believe CRH is more favorable than Latham Group.

Volatility and Risk

Latham Group has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, CRH has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Summary

CRH beats Latham Group on 12 of the 15 factors compared between the two stocks.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

About CRH

CRH plc, together with its subsidiaries, provides building materials solutions in Ireland and internationally. It operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions. The company provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings; and produces and sells aggregates, cement, readymixed concrete, and asphalt, as well as provides paving and construction services. It also manufactures, supplies, and delivers solutions for the built environment in communities across North America; and offers building and infrastructure solutions serving complex critical utility infrastructure, such as water, energy, transportation, and telecommunications projects, and outdoor living solutions for enhancing private and public spaces. In addition, the company combines materials, products, and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces for the built environment. Further, it produces and supplies precast and pre-stressed concrete products comprising floor and wall elements, beams, vaults, pipes, and manholes; granite, limestone, and sandstone; concrete and polymer-based products, such as underground vaults, drainage systems, utility enclosures, and modular precast structures; engineered steel, polymer-based anchoring, fixing, and connecting solutions; concrete masonry, hardscape and related products, including pavers, blocks and curbs, retaining walls, and slabs; and fencing and railing systems, composite decking, lawn and garden products, and packaged concrete mixes. The company was founded in 1936 and is headquartered in Dublin, Ireland.