Advanced Drainage Systems (NYSE:WMS) and RDVA (OTCMKTS:RDVA) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Advanced Drainage Systems and RDVA’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advanced Drainage Systems||$1.98 billion||4.35||$224.23 million||$2.59||46.21|
Insider & Institutional Ownership
81.8% of Advanced Drainage Systems shares are owned by institutional investors. 14.9% of Advanced Drainage Systems shares are owned 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.
This table compares Advanced Drainage Systems and RDVA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Drainage Systems||11.18%||30.76%||9.29%|
Volatility & Risk
Advanced Drainage Systems has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, RDVA has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Advanced Drainage Systems and RDVA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Drainage Systems||0||1||2||0||2.67|
Advanced Drainage Systems currently has a consensus price target of $124.00, indicating a potential upside of 3.63%. Given Advanced Drainage Systems’ higher probable upside, equities analysts plainly believe Advanced Drainage Systems is more favorable than RDVA.
Advanced Drainage Systems beats RDVA on 9 of the 9 factors compared between the two stocks.
Advanced Drainage Systems Company Profile
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States, Canada, Mexico, and internationally. It operates through Pipe, International and Infiltrator, and Allied Products & Other segments. The company offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems, EZflow synthetic aggregate bundles, mechanical aerated wastewater solutions, septic tanks and accessories, and combined treatment dispersal systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. It also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of approximately 38 distribution centers. Advanced Drainage Systems, Inc. was incorporated in 1966 and is headquartered in Hilliard, Ohio.
RDVA Company Profile
RDVA, Inc. designs and manufactures foam packaging and products in the United States. The company offers various custom protective packaging products; packaging products, including corner pads, edge pads, and specialty items; standard and specialty insulated containers; and specialty components and shapes. Its products are used in various industries, which include high technology, agriculture, telecommunications, consumer electronics, automotive, appliances, building products, military, textile, furniture, pharmaceuticals, agriculture, medical, perishable foods, wine and beer, food and beverage, and manufacturing industries. RDVA, Inc. was founded in 1962 and is based in Radford, Virginia.
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