Trex (NYSE:TREX – Get Free Report) is one of 93 publicly-traded companies in the “Building Products” industry, but how does it compare to its peers? We will compare Trex to similar companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Insider & Institutional Ownership
96.0% of Trex shares are held by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are held by institutional investors. 0.9% of Trex shares are held by insiders. Comparatively, 10.2% of shares of all “Building Products” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Trex and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trex | 1 | 5 | 13 | 0 | 2.63 |
| Trex Competitors | 740 | 3933 | 5066 | 238 | 2.48 |
Trex currently has a consensus price target of $55.18, indicating a potential upside of 0.54%. As a group, “Building Products” companies have a potential upside of 30.60%. Given Trex’s peers higher possible upside, analysts clearly believe Trex has less favorable growth aspects than its peers.
Risk and Volatility
Trex has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Trex’s peers have a beta of 1.07, suggesting that their average share price is 7% more volatile than the S&P 500.
Earnings & Valuation
This table compares Trex and its peers revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Trex | $1.17 billion | $190.41 million | 31.91 |
| Trex Competitors | $4.00 billion | $4.65 billion | 36.43 |
Trex’s peers have higher revenue and earnings than Trex. Trex is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares Trex and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trex | 14.68% | 18.03% | 11.76% |
| Trex Competitors | 3.69% | -26.96% | 5.10% |
Summary
Trex beats its peers on 7 of the 13 factors compared.
About Trex
Trex Company, Inc. manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products that are used in Trex decking products and other decking materials; Trex Select Railing products for a simple clean finished look; Trex Enhance Railing system; Trex Signature aluminum railing for a contemporary look; and Trex Select T-Rail railing products. In addition, it offers Trex Seclusions, a fencing product that includes structural posts, bottom and top rails, pickets, and decorative post caps. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-alternative composite decking; Trex SpiralStairs and structural steel posts; and Trex Outdoor Kitchens, cabinetry, and Storage products. It sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe’s stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.
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