Head to Head Analysis: Ferguson (FERG) & Its Rivals

Ferguson (NYSE:FERG) is one of 69 public companies in the “MACH – GENL INDL” industry, but how does it compare to its competitors? We will compare Ferguson to similar businesses based on the strength of its dividends, earnings, institutional ownership, analyst recommendations, risk, profitability and valuation.

Risk & Volatility

Ferguson has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Ferguson’s competitors have a beta of 12.18, suggesting that their average stock price is 1,118% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Ferguson	$29.64 billion	$1.74 billion	27.14
Ferguson Competitors	$4.72 billion	$501.64 million	19.62

Ferguson has higher revenue and earnings than its competitors. Ferguson 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ferguson	5.32%	34.02%	11.28%
Ferguson Competitors	8.57%	12.70%	7.08%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ferguson and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferguson	0	1	0	1	3.00
Ferguson Competitors	337	2441	3096	123	2.50

As a group, “MACH – GENL INDL” companies have a potential upside of 12.61%. Given Ferguson’s competitors higher probable upside, analysts plainly believe Ferguson has less favorable growth aspects than its competitors.

Dividends

Ferguson pays an annual dividend of $3.32 per share and has a dividend yield of 1.5%. Ferguson pays out 41.4% of its earnings in the form of a dividend. As a group, “MACH – GENL INDL” companies pay a dividend yield of 1.2% and pay out 25.8% of their earnings in the form of a dividend.

Insider & Institutional Ownership

82.0% of Ferguson shares are owned by institutional investors. Comparatively, 73.4% of shares of all “MACH – GENL INDL” companies are owned by institutional investors. 0.2% of Ferguson shares are owned by insiders. Comparatively, 6.1% of shares of all “MACH – GENL INDL” companies are owned by 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.

Summary

Ferguson beats its competitors on 9 of the 15 factors compared.

About Ferguson

Ferguson Enterprises Inc. distributes plumbing and heating products in North America. The company provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, as well as heating, ventilation, and air conditioning (HVAC) to residential and non-residential customers. It also supplies specialist water and wastewater treatment products to residential, commercial, and infrastructure contractors, as well as supplies pipe, valves, and fittings solutions to industrial customers. In addition, it offers customized solutions, such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation, and project management services, as well as after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, and repair and operations support. The company sells its products through a network of distribution centers, branches, counter service and specialist sales associates, showroom consultants, and e-commerce channels. Ferguson Enterprises Inc. was founded in 1953 and is headquartered in Newport News, Virginia.