Financial Analysis: Jewett-Cameron Trading (NASDAQ:JCTC) vs. Floor & Decor (NYSE:FND)

Floor & Decor (NYSE:FND) and Jewett-Cameron Trading (NASDAQ:JCTC) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Valuation and Earnings

This table compares Floor & Decor and Jewett-Cameron Trading”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Floor & Decor	$4.46 billion	1.88	$245.98 million	$1.90	41.08
Jewett-Cameron Trading	$46.61 million	0.28	$720,000.00	($0.35)	-10.71

Floor & Decor has higher revenue and earnings than Jewett-Cameron Trading. Jewett-Cameron Trading is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Floor & Decor has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Jewett-Cameron Trading has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Profitability

This table compares Floor & Decor and Jewett-Cameron Trading’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Floor & Decor	4.62%	9.80%	4.17%
Jewett-Cameron Trading	-2.66%	-5.00%	-4.44%

Analyst Recommendations

This is a summary of current ratings and price targets for Floor & Decor and Jewett-Cameron Trading, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Floor & Decor	2	11	5	0	2.17
Jewett-Cameron Trading	0	0	0	0	0.00

Floor & Decor presently has a consensus target price of $103.56, suggesting a potential upside of 32.68%. Given Floor & Decor’s stronger consensus rating and higher probable upside, analysts clearly believe Floor & Decor is more favorable than Jewett-Cameron Trading.

Institutional and Insider Ownership

26.0% of Jewett-Cameron Trading shares are held by institutional investors. 2.1% of Floor & Decor shares are held by company insiders. Comparatively, 1.3% of Jewett-Cameron Trading shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Floor & Decor beats Jewett-Cameron Trading on 13 of the 14 factors compared between the two stocks.

About Floor & Decor

Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.

About Jewett-Cameron Trading

Jewett-Cameron Trading Company Ltd. is a supplier of `Value-added` building materials to major home improvement center chains in the western United States. The Company concentrates on the residential repair and remodeling segment of the building materials industry.