Latham Group (NASDAQ:SWIM – Get Free Report) and Caesarstone (NASDAQ:CSTE – Get Free Report) are both small-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Valuation & Earnings
This table compares Latham Group and Caesarstone”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Latham Group | $508.52 million | 1.52 | -$17.86 million | ($0.10) | -66.30 |
| Caesarstone | $443.22 million | 0.16 | -$42.83 million | ($2.03) | -1.00 |
Volatility & Risk
Latham Group has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Caesarstone has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500.
Insider & Institutional Ownership
84.0% of Latham Group shares are held by institutional investors. Comparatively, 33.7% of Caesarstone shares are held by institutional investors. 8.6% of Latham Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Latham Group and Caesarstone’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Latham Group | -2.07% | -2.80% | -1.34% |
| Caesarstone | -18.44% | -19.35% | -9.18% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Latham Group and Caesarstone, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Latham Group | 2 | 1 | 0 | 0 | 1.33 |
| Caesarstone | 1 | 0 | 0 | 0 | 1.00 |
Latham Group presently has a consensus target price of $7.19, indicating a potential upside of 8.41%. Given Latham Group’s stronger consensus rating and higher possible upside, analysts plainly believe Latham Group is more favorable than Caesarstone.
Summary
Latham Group beats Caesarstone on 12 of the 13 factors compared between the two stocks.
About Latham Group
Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.
About Caesarstone
Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.
Receive News & Ratings for Latham Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Latham Group and related companies with MarketBeat.com's FREE daily email newsletter.
