Knife River (NYSE:KNF – Get Free Report) and Advanced Drainage Systems (NYSE:WMS – Get Free Report) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
80.1% of Knife River shares are owned by institutional investors. Comparatively, 89.8% of Advanced Drainage Systems shares are owned by institutional investors. 0.4% of Knife River shares are owned by insiders. Comparatively, 1.7% of Advanced Drainage Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Knife River and Advanced Drainage Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Knife River | 4.58% | 9.35% | 3.96% |
| Advanced Drainage Systems | 13.98% | 26.63% | 11.80% |
Volatility and Risk
Analyst Ratings
This is a summary of current recommendations and price targets for Knife River and Advanced Drainage Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Knife River | 1 | 3 | 6 | 0 | 2.50 |
| Advanced Drainage Systems | 0 | 1 | 7 | 0 | 2.88 |
Knife River presently has a consensus target price of $97.29, indicating a potential upside of 12.81%. Advanced Drainage Systems has a consensus target price of $185.75, indicating a potential upside of 26.12%. Given Advanced Drainage Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Advanced Drainage Systems is more favorable than Knife River.
Valuation & Earnings
This table compares Knife River and Advanced Drainage Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Knife River | $3.15 billion | 1.56 | $157.07 million | $2.57 | 33.56 |
| Advanced Drainage Systems | $3.05 billion | 3.70 | $426.46 million | $5.44 | 27.07 |
Advanced Drainage Systems has lower revenue, but higher earnings than Knife River. Advanced Drainage Systems is trading at a lower price-to-earnings ratio than Knife River, indicating that it is currently the more affordable of the two stocks.
Summary
Advanced Drainage Systems beats Knife River on 12 of the 14 factors compared between the two stocks.
About Knife River
Knife River Corporation, together with its subsidiaries, provides aggregates- led construction materials and contracting services in the United States. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete. It also provides contracting service, such as heavy-civil construction, asphalt and concrete paving, and site development and grading. In addition, the company sells cement, merchandise, and other building materials and related services. The company sells its construction materials to public and private-sector customers, including federal, state, and municipal governments, as well as industrial, commercial and residential developers, and other private parties; and provides its contracting services to public-sector customers for the development and servicing of highways, local roads, bridges, and other public-infrastructure projects. Knife River Corporation was founded in 1917 and is based in Bismarck, North Dakota.
About Advanced Drainage Systems
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company 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. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.
Receive News & Ratings for Knife River Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Knife River and related companies with MarketBeat.com's FREE daily email newsletter.
-logo-1200x675.png){kind=logo}