Advanced Drainage Systems (NYSE:WMS – Get Free Report) and Gibraltar Industries (NASDAQ:ROCK – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.
Risk & Volatility
Advanced Drainage Systems has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Earnings and Valuation
This table compares Advanced Drainage Systems and Gibraltar Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Advanced Drainage Systems | $3.05 billion | 3.22 | $426.46 million | $5.79 | 22.50 |
| Gibraltar Industries | $1.14 billion | 1.01 | -$44.39 million | ($5.04) | -7.64 |
Advanced Drainage Systems has higher revenue and earnings than Gibraltar Industries. Gibraltar Industries is trading at a lower price-to-earnings ratio than Advanced Drainage Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Advanced Drainage Systems and Gibraltar Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Advanced Drainage Systems | 0 | 2 | 8 | 0 | 2.80 |
| Gibraltar Industries | 1 | 1 | 1 | 1 | 2.50 |
Advanced Drainage Systems presently has a consensus price target of $187.40, suggesting a potential upside of 43.83%. Given Advanced Drainage Systems’ stronger consensus rating and higher probable upside, research analysts plainly believe Advanced Drainage Systems is more favorable than Gibraltar Industries.
Profitability
This table compares Advanced Drainage Systems and Gibraltar Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Advanced Drainage Systems | 14.00% | 28.28% | 12.30% |
| Gibraltar Industries | -10.43% | 11.23% | 4.91% |
Insider and Institutional Ownership
89.8% of Advanced Drainage Systems shares are owned by institutional investors. Comparatively, 98.4% of Gibraltar Industries shares are owned by institutional investors. 1.7% of Advanced Drainage Systems shares are owned by insiders. Comparatively, 0.9% of Gibraltar Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Advanced Drainage Systems beats Gibraltar Industries on 13 of the 15 factors compared between the two stocks.
About Advanced Drainage Systems
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.
About Gibraltar Industries
Gibraltar Industries, Inc. manufactures and provides products and services for the renewable energy, residential, agtech, and infrastructure markets in the United States and internationally. It operates through four segments: Renewables, Residential, Agtech, and Infrastructure. The Renewables segment designs, engineers, manufactures, and installs solar racking and electrical balance of systems for commercial and distributed generation scale solar installations. The Residential segment offers roof and foundation ventilation products and accessories; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, pipe flashings, and remote-controlled deck awnings and valances for sun protection. The Agtech segment offers growing and processing solutions, including the designing, engineering, manufacturing, construction, maintenance, and support of greenhouses; and indoor growing operations for retail, fruits and vegetables, flowers, cannabis, commercial, institutional and conservatories, and car wash structure applications. The Infrastructure segment offers expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems. It serves solar developers, home improvement retailers, wholesalers, distributors, and contractors, as well as institutional and commercial growers of fruit, vegetables, flowers, and plants. Gibraltar Industries, Inc. was founded in 1972 and is headquartered in Buffalo, New York.
Receive News & Ratings for Advanced Drainage Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Advanced Drainage Systems and related companies with MarketBeat.com's FREE daily email newsletter.
