Core & Main (CNM) vs. The Competition Critical Review

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

Profitability

This table compares Core & Main and its competitors’ 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	2.91%	-33.93%	3.55%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Core & Main	$7.65 billion	$441.00 million	19.43
Core & Main Competitors	$6.46 billion	$364.19 million	24.81

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

Volatility and Risk

Core & Main has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Core & Main’s competitors have a beta of 1.28, indicating that their average share price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Core & Main and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	5	7	0	2.58
Core & Main Competitors	1410	4870	6696	229	2.43

Core & Main presently has a consensus price target of $56.70, indicating a potential upside of 23.67%. As a group, “Trading Companies & Distributors” companies have a potential upside of 5.29%. Given Core & Main’s stronger consensus rating and higher possible upside, equities analysts clearly believe Core & Main is more favorable than its competitors.

Insider and Institutional Ownership

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

Summary

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

About Core & Main

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.