Head to Head Comparison: Coates International (OTCMKTS:COTE) versus Ferguson (NYSE:FERG)

Coates International (OTCMKTS:COTE) and Ferguson (NYSE:FERG) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for Coates International and Ferguson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coates International	0	0	0	0	0.00
Ferguson	0	7	10	1	2.67

Ferguson has a consensus target price of $235.71, suggesting a potential downside of 1.81%. Given Coates International’s higher possible upside, analysts clearly believe Coates International is more favorable than Ferguson.

Insider & Institutional Ownership

82.0% of Ferguson shares are owned by institutional investors. 0.2% of Ferguson shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Coates International and Ferguson”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coates International	N/A	N/A	N/A	N/A	N/A
Ferguson	$30.76 billion	1.53	$700.00 million	$9.34	25.70

Ferguson has higher revenue and earnings than Coates International.

Profitability

This table compares Coates International and Ferguson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coates International	N/A	N/A	N/A
Ferguson	6.03%	35.21%	11.59%

Summary

Ferguson beats Coates International on 9 of the 10 factors compared between the two stocks.

About Coates International

Coates International, Ltd. develops and sells Coates Spherical Rotary Valve (CSRV) system technology for use in various piston-driven internal combustion engines in the United States and internationally. The company's CSRV system technology replaces the intake and exhausts conventional poppet valves used in various piston-driven stationary, automotive, motorcycle, and marine engines. Its CSRV system technology is used in various applications, including engines for electric power generators for home use, industrial complexes, and grid installations; and engines to power motorcycles, automobiles, light and heavy trucks, machinery, railroads, marine engines, military equipment, light aircraft, helicopters, lawn mowers, snowmobiles and jet skis, etc. Coates International, Ltd. was founded in 1988 and is headquartered in Wall Township, New Jersey.

About Ferguson

Ferguson Enterprises Inc. distributes plumbing and heating products in North America. The company provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, as well as heating, ventilation, and air conditioning (HVAC) to residential and non-residential customers. It also supplies specialist water and wastewater treatment products to residential, commercial, and infrastructure contractors, as well as supplies pipe, valves, and fittings solutions to industrial customers. In addition, it offers customized solutions, such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation, and project management services, as well as after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, and repair and operations support. The company sells its products through a network of distribution centers, branches, counter service and specialist sales associates, showroom consultants, and e-commerce channels. Ferguson Enterprises Inc. was founded in 1953 and is headquartered in Newport News, Virginia.