Travis Perkins (OTCMKTS:TPRKY – Get Free Report) and Lowe’s Companies (NYSE:LOW – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
74.1% of Lowe’s Companies shares are owned by institutional investors. 0.3% of Lowe’s Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Travis Perkins and Lowe’s Companies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Travis Perkins | N/A | N/A | N/A |
Lowe’s Companies | 8.25% | -47.07% | 15.79% |
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Travis Perkins | $6.05 billion | N/A | $47.39 million | N/A | N/A |
Lowe’s Companies | $86.38 billion | 1.78 | $7.73 billion | $12.06 | 22.42 |
Lowe’s Companies has higher revenue and earnings than Travis Perkins.
Volatility and Risk
Travis Perkins has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Travis Perkins and Lowe’s Companies, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Travis Perkins | 0 | 0 | 0 | 0 | 0.00 |
Lowe’s Companies | 0 | 10 | 15 | 0 | 2.60 |
Lowe’s Companies has a consensus target price of $273.84, suggesting a potential upside of 1.29%. Given Lowe’s Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Lowe’s Companies is more favorable than Travis Perkins.
Summary
Lowe’s Companies beats Travis Perkins on 10 of the 11 factors compared between the two stocks.
About Travis Perkins
Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products. Additionally, the company manufactures and supplies staircases, i-joists, precision floor kits, painted MDF profiles, and door kits/sets. The company markets its products under Travis Perkins, Toolstation, BSS, Keyline, and CCF brands. It sells its products through branches and distribution centres, as well as online. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.
About Lowe’s Companies
Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.
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