Volution Group (LON:FAN) and Forterra (LON:FORT) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
Profitability
This table compares Volution Group and Forterra's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Volution Group | N/A | N/A | N/A |
Forterra | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent recommendations and price targets for Volution Group and Forterra, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Volution Group | 0 | 0 | 3 | 0 | 3.00 |
Forterra | 0 | 4 | 3 | 0 | 2.43 |
Volution Group presently has a consensus target price of GBX 410, suggesting a potential downside of 6.71%. Forterra has a consensus target price of GBX 219.67, suggesting a potential downside of 26.16%. Given Volution Group's stronger consensus rating and higher probable upside, equities analysts clearly believe Volution Group is more favorable than Forterra.
Valuation and Earnings
This table compares Volution Group and Forterra's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Volution Group | £229.60 million | 3.78 | N/A | GBX 5.30 | 82.92 |
Forterra | £291.90 million | 2.33 | N/A | GBX (2.60) | -114.42 |
Forterra is trading at a lower price-to-earnings ratio than Volution Group, indicating that it is currently the more affordable of the two stocks.
Summary
Volution Group beats Forterra on 5 of the 6 factors compared between the two stocks.