Financial Analysis: Core & Main (CNM) versus The Competition

Core & Main (NYSE:CNM) is one of 159 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it contrast to its rivals? We will compare Core & Main to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.

Risk & Volatility

Core & Main has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Core & Main’s rivals have a beta of 1.25, suggesting that their average stock price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Core & Main and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	5	7	0	2.58
Core & Main Competitors	1408	4863	6673	227	2.43

Core & Main currently has a consensus target price of $56.70, suggesting a potential upside of 21.79%. As a group, “Trading Companies & Distributors” companies have a potential upside of 4.29%. Given Core & Main’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Core & Main is more favorable than its rivals.

Valuation & Earnings

This table compares Core & Main and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Core & Main	$7.65 billion	$441.00 million	19.73
Core & Main Competitors	$6.45 billion	$364.19 million	26.02

Core & Main has higher revenue and earnings than its rivals. Core & Main is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

94.2% of Core & Main shares are held by institutional investors. Comparatively, 50.9% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 1.5% of Core & Main shares are held by company insiders. Comparatively, 16.7% of shares of all “Trading Companies & Distributors” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Core & Main and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.87%	26.17%	8.58%
Core & Main Competitors	2.87%	-33.64%	3.65%

Summary

Core & Main beats its rivals on 9 of the 13 factors compared.

Core & Main Company Profile

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.