Advanced Drainage Systems (NYSE:WMS) versus JELD-WEN (NYSE:JELD) Critical Review

Advanced Drainage Systems (NYSE:WMS – Get Free Report) and JELD-WEN (NYSE:JELD – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

89.8% of Advanced Drainage Systems shares are held by institutional investors. Comparatively, 95.0% of JELD-WEN shares are held by institutional investors. 1.7% of Advanced Drainage Systems shares are held by company insiders. Comparatively, 1.9% of JELD-WEN shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Advanced Drainage Systems has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, JELD-WEN has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Advanced Drainage Systems and JELD-WEN, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Drainage Systems 0 2 8 0 2.80
JELD-WEN 1 5 0 0 1.83

Advanced Drainage Systems presently has a consensus target price of $188.20, indicating a potential upside of 49.23%. JELD-WEN has a consensus target price of $2.10, indicating a potential upside of 68.67%. Given JELD-WEN’s higher possible upside, analysts clearly believe JELD-WEN is more favorable than Advanced Drainage Systems.

Profitability

This table compares Advanced Drainage Systems and JELD-WEN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advanced Drainage Systems 14.00% 28.28% 12.30%
JELD-WEN -16.36% -246.42% -5.69%

Earnings & Valuation

This table compares Advanced Drainage Systems and JELD-WEN”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 $3.05 billion 3.12 $426.46 million $5.79 21.78
JELD-WEN $3.21 billion 0.03 -$621.21 million ($6.04) -0.21

Advanced Drainage Systems has higher earnings, but lower revenue than JELD-WEN. JELD-WEN is trading at a lower price-to-earnings ratio than Advanced Drainage Systems, indicating that it is currently the more affordable of the two stocks.

Summary

Advanced Drainage Systems beats JELD-WEN on 9 of the 14 factors compared between the two stocks.

About Advanced Drainage Systems

(Get Free Report)

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.

About JELD-WEN

(Get Free Report)

JELD-WEN Holding, Inc. designs, manufactures, and sells wood, metal, and composite materials doors, windows, and related building products in North America and Europe. The company offers a line of residential interior and exterior door products, including patio doors, and folding or sliding wall systems; non-residential doors; stile and rail doors; and wood, vinyl, and wood composite windows. It also provides other ancillary products and services, such as trim boards, glasses, hardware and locks, window screens, and molded door skins, as well as miscellaneous installation and other services. The company sells its products under the JELD-WEN, AuraLast, MiraTEC, Extira, LaCANTINA, MMI Door, Karona, ImpactGard, JW, Aurora, IWP, True BLU, ABS, Siteline, National Door, Low-Friction Glider, Hydrolock, VPI, AURALINE, FINISHIELD, MILLENNIUM, TRUFIT, EPICVUE, EVELIN, Swedoor, Dooria, DANA, Mattiovi, Zargag, Alupan, Domoferm, Kellpax, and HSE brands. It serves wholesale distributors and retailers, retail home centers, and building product dealers, as well as homebuilders, contractors, and consumers. JELD-WEN Holding, Inc. was founded in 1960 and is based in Charlotte, North Carolina.

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