SiteOne Landscape Supply (NYSE:SITE) and Ferguson (OTCMKTS:FERGY) Head to Head Analysis

Ferguson (OTCMKTS:FERGY) and SiteOne Landscape Supply (NYSE:SITE) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Profitability

This table compares Ferguson and SiteOne Landscape Supply’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferguson	N/A	N/A	N/A
SiteOne Landscape Supply	3.41%	9.76%	4.83%

Volatility & Risk

Ferguson has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, SiteOne Landscape Supply has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ferguson and SiteOne Landscape Supply, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferguson	0	0	0	0	0.00
SiteOne Landscape Supply	2	5	7	0	2.36

SiteOne Landscape Supply has a consensus price target of $135.27, indicating a potential upside of 40.09%. Given SiteOne Landscape Supply’s stronger consensus rating and higher probable upside, analysts clearly believe SiteOne Landscape Supply is more favorable than Ferguson.

Insider and Institutional Ownership

0.2% of Ferguson shares are held by institutional investors. 2.1% of SiteOne Landscape Supply shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Ferguson and SiteOne Landscape Supply”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferguson	$27.54 billion	9.76	$961.00 million	$0.65	183.83
SiteOne Landscape Supply	$4.70 billion	0.90	$155.40 million	$3.65	26.45

Ferguson has higher revenue and earnings than SiteOne Landscape Supply. SiteOne Landscape Supply is trading at a lower price-to-earnings ratio than Ferguson, indicating that it is currently the more affordable of the two stocks.

Summary

SiteOne Landscape Supply beats Ferguson on 8 of the 14 factors compared between the two stocks.

About Ferguson

Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada, and Central Europe. It offers plumbing and heating solutions to customers in the residential, municipal, civil and industrial markets, and commercial sectors for repair, maintenance, and improvement (RMI), as well as new construction markets. The company also distributes pipes, valves, fittings, hydrants, meters, and related water management products, as well as offers related services, such as water line tapping and pipe fusion services. In addition, it distributes heating, ventilation, air conditioning, refrigeration equipment, and parts and supplies to specialist contractors in the residential and commercial markets for repair and replacement; and PVF products to industrial customers. Further, the company fabricates and supplies fire protection systems and bespoke fabrication services to commercial contractors for new construction and renovation projects, as well as offers products, services, and solutions to enable maintenance of facilities across various RMI markets. Additionally, it offers supply chain management solutions for PVF; and industrial maintenance, repair, and operations specializing in delivering automation, instrumentation, engineered products, and turn-key solutions. The company also sells its home improvement products directly to consumers, as well as through a network of online stores. In addition, it operates its B2B business primarily under the Ferguson brand; and B2C business under the Build.com brand. Further, the company provides products and services for maintenance of multi-family properties, government agencies, hospitality, education, healthcare, and other facilities. It operates a network of 2,194 branches and 19 distribution centers. Ferguson plc was founded in 1887 and is headquartered in Wokingham, the United Kingdom.

About SiteOne Landscape Supply

SiteOne Landscape Supply, Inc., together with its subsidiaries, engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides irrigation products, including controllers, valves, sprinkler heads, irrigation pipes, micro irrigation, and drip products; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species and cultivars; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specializes in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.