Critical Review: Victoria (OTCMKTS:VCCTF) & American Woodmark (NASDAQ:AMWD)

American Woodmark (NASDAQ:AMWD) and Victoria (OTCMKTS:VCCTF) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for American Woodmark and Victoria, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Woodmark	0	3	2	0	2.40
Victoria	0	0	0	0	N/A

American Woodmark currently has a consensus target price of $93.25, indicating a potential downside of 1.27%. Given American Woodmark’s higher possible upside, equities analysts plainly believe American Woodmark is more favorable than Victoria.

Earnings & Valuation

This table compares American Woodmark and Victoria’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Woodmark	$2.07 billion	0.72	$93.72 million	$7.25	13.03
Victoria	N/A	N/A	N/A	N/A	N/A

American Woodmark has higher revenue and earnings than Victoria.

Institutional & Insider Ownership

95.5% of American Woodmark shares are owned by institutional investors. 1.0% of American Woodmark shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares American Woodmark and Victoria’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Woodmark	6.38%	16.72%	9.67%
Victoria	N/A	N/A	N/A

Summary

American Woodmark beats Victoria on 8 of the 8 factors compared between the two stocks.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States. The company offers made-to-order and cash and carry products. It also provides turnkey installation services to its direct builder customers through a network of eight service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. It markets its products directly to home centers and builders, as well as through independent dealers and distributors. The company was incorporated in 1980 and is based in Winchester, Virginia.

About Victoria

Victoria PLC, together with its subsidiaries, designs, manufactures, and distributes flooring products primarily in the United Kingdom, Spain, Italy, the Netherlands, Germany, Belgium, Turkey, the United States, and Australia. The company operates through four segments: UK & Europe Soft Flooring, UK & Europe Ceramic Tiles, Australia, and North America. It offers a range of wool and synthetic broadloom carpets, ceramic and porcelain tiles, flooring underlays, luxury vinyl tiles (LVT), hardwood flooring products, artificial grass, carpet tiles, and flooring accessories. The company also offers logistics services. It provides its products under various brands. The company was founded in 1895 and is headquartered in Worcester, the United Kingdom.