Head-To-Head Survey: Trex (NYSE:TREX) versus FGI Industries (NASDAQ:FGI)

FGI Industries (NASDAQ:FGI) and Trex (NYSE:TREX) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Risk & Volatility

FGI Industries has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, Trex has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Earnings & Valuation

This table compares FGI Industries and Trex”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FGI Industries	$130.53 million	0.11	-$6.14 million	($2.08)	-3.63
Trex	$1.17 billion	4.86	$190.41 million	$1.72	31.91

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for FGI Industries and Trex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FGI Industries	1	1	1	0	2.00
Trex	1	5	13	0	2.63

FGI Industries presently has a consensus target price of $13.00, indicating a potential upside of 71.96%. Trex has a consensus target price of $55.18, indicating a potential upside of 0.54%. Given FGI Industries’ higher possible upside, equities research analysts plainly believe FGI Industries is more favorable than Trex.

Profitability

This table compares FGI Industries and Trex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FGI Industries	-3.07%	10.02%	2.28%
Trex	14.68%	18.03%	11.76%

Institutional and Insider Ownership

96.0% of Trex shares are held by institutional investors. 2.4% of FGI Industries shares are held by company insiders. Comparatively, 0.9% of Trex shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Trex beats FGI Industries on 11 of the 14 factors compared between the two stocks.

About FGI Industries

FGI Industries ltd. supplies kitchen and bath products in the United States, Canada, Europe, and internationally. The company sells sanitaryware products, such as toilets, sinks, pedestals, and toilet seats; wood and wood-substitute furniture for bathrooms, including vanities, mirrors, laundry, medicine cabinets, and other storage systems; shower systems; and customer kitchen cabinetry and other accessory items under the Foremost, avenue, contrac, Jetcoat, rosenberg, and Covered Bridge Cabinetry brand names. It sells its products through home center retailers, online retailers, distributors, and independent dealers. The company was incorporated in 2021 and is headquartered in East Hanover, New Jersey. FGI Industries Ltd. is a subsidiary of Foremost Groups Ltd.

About Trex

Trex Company, Inc. manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products that are used in Trex decking products and other decking materials; Trex Select Railing products for a simple clean finished look; Trex Enhance Railing system; Trex Signature aluminum railing for a contemporary look; and Trex Select T-Rail railing products. In addition, it offers Trex Seclusions, a fencing product that includes structural posts, bottom and top rails, pickets, and decorative post caps. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-alternative composite decking; Trex SpiralStairs and structural steel posts; and Trex Outdoor Kitchens, cabinetry, and Storage products. It sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe’s stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.