Burnham (OTCMKTS:BURCA) & DNOW (NYSE:DNOW) Critical Review

DNOW (NYSE:DNOWGet Free Report) and Burnham (OTCMKTS:BURCAGet Free Report) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Profitability

This table compares DNOW and Burnham’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DNOW -2.66% 7.26% 4.68%
Burnham -8.03% 11.23% 7.11%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for DNOW and Burnham, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DNOW 0 1 2 1 3.00
Burnham 0 0 0 0 0.00

DNOW presently has a consensus price target of $17.67, suggesting a potential upside of 33.48%. Given DNOW’s stronger consensus rating and higher probable upside, research analysts plainly believe DNOW is more favorable than Burnham.

Risk and Volatility

DNOW has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Burnham has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.

Earnings and Valuation

This table compares DNOW and Burnham”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DNOW $2.82 billion 0.49 -$89.00 million ($0.29) -45.64
Burnham $258.11 million 0.36 -$21.45 million ($4.58) -5.90

Burnham has lower revenue, but higher earnings than DNOW. DNOW is trading at a lower price-to-earnings ratio than Burnham, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

97.6% of DNOW shares are held by institutional investors. Comparatively, 1.5% of Burnham shares are held by institutional investors. 2.7% of DNOW shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

DNOW beats Burnham on 11 of the 15 factors compared between the two stocks.

About DNOW

(Get Free Report)

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

About Burnham

(Get Free Report)

Burnham Holdings, Inc. designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States and internationally. Its residential hydronic heating products include cast iron, stainless steel, and steel boilers; cast iron and steel heat distribution products; radiators; and warm air furnaces and central air conditioning systems for the residential heating and cooling markets, including units for the manufactured housing industry. The company's commercial and industrial heating products comprise a range of cast iron, stainless steel, fire tube, water tube, copper tube boilers, and water heaters; and boiler room accessories that are used for various applications, such as military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. The company sells its residential products through wholesale distributors to builders, heating contractors, fuel dealers, and utilities for resale to end-use customers; and commercial products primarily through independent sales representatives, directly to contractors, or end users. Burnham Holdings, Inc. is based in Lancaster, Pennsylvania.

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