Trex (NYSE: TREX) is one of 24 publicly-traded companies in the “Construction Supplies & Fixtures” industry, but how does it contrast to its competitors? We will compare Trex to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, institutional ownership and profitability.

Institutional & Insider Ownership

91.8% of Trex shares are owned by institutional investors. Comparatively, 85.6% of shares of all “Construction Supplies & Fixtures” companies are owned by institutional investors. 1.0% of Trex shares are owned by company insiders. Comparatively, 6.1% of shares of all “Construction Supplies & Fixtures” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Trex and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trex 15.12% 56.76% 33.15%
Trex Competitors -22.33% 906.93% 5.67%

Earnings & Valuation

This table compares Trex and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Trex $504.24 million $131.61 million 33.56
Trex Competitors $2.61 billion $332.50 million 27.30

Trex’s competitors have higher revenue and earnings than Trex. Trex is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Trex has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500. Comparatively, Trex’s competitors have a beta of 1.46, indicating that their average share price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Trex and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trex 0 4 1 0 2.20
Trex Competitors 59 434 743 15 2.57

Trex currently has a consensus price target of $75.20, indicating a potential downside of 13.14%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 15.56%. Given Trex’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Trex has less favorable growth aspects than its competitors.

Summary

Trex competitors beat Trex on 8 of the 13 factors compared.

About Trex

Trex Company, Inc. is a manufacturer of wood-alternative decking and railing products. The Company’s products are marketed under the brand name Trex and are manufactured in the United States. It offers a set of outdoor living products in the decking, railing, porch, fencing, trim, steel deck framing and outdoor lighting categories. Its decking products include Trex Transcend, Trex Enhance and Trex Select. The Company’s railing products include Trex Transcend Railing, Trex Select Railing and Trex Signature aluminum railing. It offers Trex Transcend Porch Flooring and Railing System, which is an integrated system of porch components and accessories. The Company offers Trex Seclusions fencing product, which consists of structural posts, bottom rail, pickets, top rail and decorative post caps. It offers a triple-coated steel deck framing system called Trex Elevations. The Company also offers outdoor lighting systems, such as Trex DeckLighting and Trex Landscape Lighting.

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