HD Supply (NASDAQ:HDS) and School Specialty (OTCMKTS:SCOO) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Insider & Institutional Ownership
95.1% of HD Supply shares are held by institutional investors. Comparatively, 5.3% of School Specialty shares are held by institutional investors. 0.7% of HD Supply shares are held by company insiders. Comparatively, 26.8% of School Specialty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares HD Supply and School Specialty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares HD Supply and School Specialty’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HD Supply||$5.12 billion||1.41||$970.00 million||$2.31||17.04|
|School Specialty||$658.38 million||0.10||$6.77 million||N/A||N/A|
HD Supply has higher revenue and earnings than School Specialty.
This is a summary of recent ratings for HD Supply and School Specialty, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HD Supply presently has a consensus price target of $48.13, indicating a potential upside of 22.27%. Given HD Supply’s higher probable upside, research analysts clearly believe HD Supply is more favorable than School Specialty.
Risk and Volatility
HD Supply has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, School Specialty has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
HD Supply beats School Specialty on 10 of the 11 factors compared between the two stocks.
HD Supply Company Profile
HD Supply Holdings, Inc. operates as an industrial distributor in North America. It operates through two segments, Facilities Maintenance, and Construction & Industrial. The Facilities Maintenance segment offers electrical and lighting items, plumbing, appliances, janitorial supplies, hardware, kitchen and bath cabinets, window coverings, textiles and guest amenities, healthcare maintenance, and water and wastewater treatment products, as well as heating, ventilating, and air conditioning products. The Construction & Industrial segment offers tilt-up brace systems, forming and shoring systems, concrete chemicals, hand and power tools, cutting tools, rebars, ladders, safety and fall arrest equipment, specialty screws and fasteners, sealants and adhesives, drainage pipes, geo-synthetics, erosion and sediment control equipment, and other engineered materials used in non-residential and residential construction. This segment also provides home improvement solutions, such as light remodeling and construction supplies, kitchen and bath cabinets, windows, plumbing materials, electrical equipment, and other products primarily to small remodeling contractors and trade professionals through local retail outlets. In addition, it offers pre-bid assistance, product submittals, engineering, and tool repair services. It serves contractors, maintenance professionals, home builders, industrial businesses, and government entities through a network of branches and professional sales force, as well as through print catalogs and e-commerce. The company was formerly known as HDS Investment Holding, Inc. and changed its name to HD Supply Holdings, Inc. in April 2013. HD Supply Holdings, Inc. is headquartered in Atlanta, Georgia.
School Specialty Company Profile
School Specialty, Inc., together with its subsidiaries, distributes supplies, furniture, technology products, supplemental learning products, and curriculum solutions to the education marketplace in the United States and Canada. The company's Distribution segment offers office products, classroom supplies, janitorial and sanitation supplies, school equipment, planning and development products, physical education products, art supplies and paper, and others; supplemental learning materials, teaching resources, special needs and education products, early childhood offerings, classroom technology, planning and student development, and school health and furniture; and project management and design services for school refurbishment and new construction projects. This segment provides its products primarily under the Childcraft, Sax Arts & Crafts, Califone, Premier Agendas, Classroom Select, Sportime, Abilitations, Hammond & Stephens, SPARK, Brodhead Garrett, School Smart, Royal Seating, and Projects by Design brands. Its Curriculum segment develops standards-based curriculum products, supplemental and intervention curriculum materials, instructional programs, and student assessment tools in the areas of science, math, and reading and math intervention, as well as comprehension, vocabulary, spelling, and grammar. This segment sells its products to teachers, curriculum specialists, and other educators under various product lines, such as Delta Education, FOSS, CPO Science, Frey Scientific, Educator's Publishing Service, Academy of Reading, Academy of Math, Wordly Wise 3000, Explode the Code, ThinkMath!, Making Connections, and S.P.I.R.E. The company offers its products through its sales force, catalogs, and its proprietary e-commerce Websites. School Specialty, Inc. was founded in 1959 and is headquartered in Greenville, Wisconsin.
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