Analyzing Quanex Building Products (NYSE:NX) and Tarkett (OTCMKTS:TKFTF)

Quanex Building Products (NYSE:NX) and Tarkett (OTCMKTS:TKFTF) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Quanex Building Products and Tarkett, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quanex Building Products	1	1	1	0	2.00
Tarkett	0	0	0	0	0.00

Quanex Building Products currently has a consensus target price of $28.00, indicating a potential upside of 27.59%. Given Quanex Building Products’ stronger consensus rating and higher possible upside, analysts plainly believe Quanex Building Products is more favorable than Tarkett.

Profitability

This table compares Quanex Building Products and Tarkett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quanex Building Products	-13.85%	11.11%	4.07%
Tarkett	N/A	N/A	N/A

Valuation and Earnings

This table compares Quanex Building Products and Tarkett”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quanex Building Products	$1.86 billion	0.54	-$250.81 million	($5.63)	-3.90
Tarkett	N/A	N/A	N/A	N/A	N/A

Tarkett has lower revenue, but higher earnings than Quanex Building Products.

Institutional & Insider Ownership

97.5% of Quanex Building Products shares are held by institutional investors. 1.9% of Quanex Building Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Quanex Building Products beats Tarkett on 8 of the 9 factors compared between the two stocks.

About Quanex Building Products

Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, rest of Europe, Canada, Asia, the United Kingdom, and internationally. The company operates through three segments: North American Fenestration, European Fenestration, and North American Cabinet Components. It offers flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and precision-formed metal and wood products, as well as cabinet doors and other components for original equipment manufacturers (OEMs) in the kitchen and bathroom cabinet industry. In addition, the company provides various non-fenestration components and products, including solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. It sells its products to OEMs in the building products industry through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation was founded in 1927 and is based in Houston, Texas.

About Tarkett

Tarkett S.A., a flooring company, provides flooring and sports surface solutions to business and residential end users worldwide. The company provides heterogeneous and homogeneous vinyl flooring products, parquet and laminate flooring products, rubber flooring and accessories, wood floor products, resilient flooring, carpets, linoleum floor products, and synthetic grass, athletic tracks, and indoor sports flooring. It offers its products for use in healthcare, aged care, the workplace, education, stores and shops, hospitality and leisure, residential and sports segments. The company was founded in 1886 and is headquartered in Paris, France. Tarkett S.A. is a subsidiary of Societe Investissement Deconinck.