Valmont Industries (NYSE: VMI) and Apogee Enterprises (NASDAQ:APOG) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Valuation and Earnings

This table compares Valmont Industries and Apogee Enterprises’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Valmont Industries $2.64 billion 1.27 $344.67 million $8.07 18.40
Apogee Enterprises $1.14 billion 1.30 $159.39 million $2.91 17.67

Valmont Industries has higher revenue and earnings than Apogee Enterprises. Apogee Enterprises is trading at a lower price-to-earnings ratio than Valmont Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

Valmont Industries pays an annual dividend of $1.50 per share and has a dividend yield of 1.0%. Apogee Enterprises pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. Valmont Industries pays out 18.6% of its earnings in the form of a dividend. Apogee Enterprises pays out 19.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Valmont Industries and Apogee Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valmont Industries 6.94% 14.89% 6.29%
Apogee Enterprises 7.39% 18.59% 11.53%

Volatility and Risk

Valmont Industries has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Institutional and Insider Ownership

85.0% of Valmont Industries shares are owned by institutional investors. 3.3% of Valmont Industries shares are owned by insiders. Comparatively, 3.7% of Apogee Enterprises shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Valmont Industries and Apogee Enterprises, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valmont Industries 0 1 2 0 2.67
Apogee Enterprises 0 0 3 0 3.00

Valmont Industries presently has a consensus target price of $171.00, suggesting a potential upside of 15.19%. Apogee Enterprises has a consensus target price of $64.67, suggesting a potential upside of 25.76%. Given Apogee Enterprises’ stronger consensus rating and higher probable upside, analysts clearly believe Apogee Enterprises is more favorable than Valmont Industries.

Summary

Apogee Enterprises beats Valmont Industries on 10 of the 16 factors compared between the two stocks.

Valmont Industries Company Profile

Valmont Industries, Inc. is a producer of fabricated metal products, and steel, aluminum and composite pole, tower and other structures, and mechanized irrigation systems. The Company’s segments are Engineered Support Structures (ESS); Utility Support Structures; Energy and Mining; Coatings; Irrigation, and Other. The ESS segment manufactures steel, aluminum, and composite poles and structures. The Utility Support Structures Segment manufactures steel and concrete pole structures for electrical transmission, substation and distribution applications. The Energy and Mining Segment produces access systems, which are engineered structures and components that allow people to move safely in an industrial, infrastructure or commercial facility. The Coatings Segment consists of galvanizing, anodizing and powder coating services on a global basis. The Irrigation Segment manufactures and distributes mechanical irrigation equipment and related service parts under the Valley brand name.

Apogee Enterprises Company Profile

Apogee Enterprises, Inc. is engaged in the design and development of glass solutions for enclosing commercial buildings and framing art. The Company operates through four segments: Architectural Glass, Architectural Services, Architectural Framing Systems and Large-Scale Optical Technologies (LSO). The Architectural Glass segment fabricates coated glass used in customized window and wall systems. The Architectural Services segment designs, engineers, fabricates and installs the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings. The Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront and entrance systems. The Large-Scale Optical Technologies segment manufactures glass and acrylic products for the custom picture framing and fine art markets.

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