ADDvantage Technologies Group (AEY) & W W Grainger (GWW) Critical Survey

W W Grainger (NYSE:GWW) and ADDvantage Technologies Group (NASDAQ:AEY) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Risk & Volatility

W W Grainger has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, ADDvantage Technologies Group has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for W W Grainger and ADDvantage Technologies Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W W Grainger 2 15 1 0 1.94
ADDvantage Technologies Group 0 0 0 0 N/A

W W Grainger presently has a consensus target price of $307.00, suggesting a potential upside of 4.51%. Given W W Grainger’s higher probable upside, equities analysts clearly believe W W Grainger is more favorable than ADDvantage Technologies Group.

Insider and Institutional Ownership

75.3% of W W Grainger shares are held by institutional investors. Comparatively, 7.9% of ADDvantage Technologies Group shares are held by institutional investors. 10.1% of W W Grainger shares are held by insiders. Comparatively, 31.3% of ADDvantage Technologies 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 W W Grainger and ADDvantage Technologies Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
W W Grainger 6.51% 45.22% 15.18%
ADDvantage Technologies Group -5.60% -2.90% -2.33%

Valuation and Earnings

This table compares W W Grainger and ADDvantage Technologies Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
W W Grainger $10.42 billion 1.59 $585.73 million $11.46 25.63
ADDvantage Technologies Group $48.71 million 0.28 -$90,000.00 N/A N/A

W W Grainger has higher revenue and earnings than ADDvantage Technologies Group.

Dividends

W W Grainger pays an annual dividend of $5.44 per share and has a dividend yield of 1.9%. ADDvantage Technologies Group does not pay a dividend. W W Grainger pays out 47.5% of its earnings in the form of a dividend. W W Grainger has raised its dividend for 46 consecutive years.

Summary

W W Grainger beats ADDvantage Technologies Group on 12 of the 14 factors compared between the two stocks.

W W Grainger Company Profile

W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) supplies; and other related products and services that are used by businesses and institutions in the United States, Canada, Europe, Asia, and Latin America. The company offers material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, metalworking tools, and various other products. It also offers inventory management solutions; and distributes fasteners, gloves, ladders, motors, and janitorial supplies. The company serves small and mid-sized businesses, large corporations, government entities, and other institutions. It offers its products through various branches, sales and service representatives, contact centers, distribution centers, and catalogs, as well as through Websites. W.W. Grainger, Inc. was founded in 1927 and is based in Lake Forest, Illinois.

ADDvantage Technologies Group Company Profile

ADDvantage Technologies Group, Inc. distributes and services electronics and hardware for the cable television and telecommunication industries worldwide. The company's Cable Television segment provides cable television equipment for use in connection with video, telephone, and Internet data signals. This segment also offers headend products, including satellite receivers, integrated receivers/decoders, demodulators, modulators, antennas and antenna mounts, amplifiers, equalizers, and processors for signal acquisition, processing, and manipulation for further transmission; and fiber products, such as optical transmitters, fiber-optic cables, receivers, couplers, splitters, and compatible accessories. In addition, this segment provides access and transport products comprising transmitters, receivers, line extenders, broadband amplifiers, directional taps, and splitters used to permit signals to travel from the headend to their destination in a home, apartment, hotel room, office, or other terminal location; test equipment for use in the set-up, signal testing, and maintenance of electronic equipment, as well as support of cable television system; hardware equipment, such as connector and cable products; and repair services. Its Telecommunications segment offers new and used telecommunication equipment, including component parts, and spares or replace non-working components. This segment provides central office equipment comprising optical, switching, and data equipment on a customer's communication network; and customer premise equipment, such as integrated access devices, channel banks, Internet protocol private branch exchange phones, and routers, as well as decommissioning services. The company was formerly known as ADDvantage Media Group, Inc. and changed its name to ADDvantage Technologies Group, Inc. in December 1999. ADDvantage Technologies Group, Inc. was founded in 1989 and is headquartered in Broken Arrow, Oklahoma.

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