Analyzing Northann (NYSE:NCL) & Latham Group (NASDAQ:SWIM)

Latham Group (NASDAQ:SWIM) and Northann (NYSE:NCL) are both small-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Insider & Institutional Ownership

84.0% of Latham Group shares are owned by institutional investors. Comparatively, 0.3% of Northann shares are owned by institutional investors. 7.6% of Latham Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Latham Group and Northann, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latham Group	1	1	1	0	2.00
Northann	0	0	0	0	N/A

Latham Group presently has a consensus target price of $3.53, suggesting a potential upside of 13.98%. Given Latham Group’s higher possible upside, equities analysts plainly believe Latham Group is more favorable than Northann.

Profitability

This table compares Latham Group and Northann’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latham Group	0.76%	1.05%	0.49%
Northann	N/A	N/A	N/A

Valuation and Earnings

This table compares Latham Group and Northann’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latham Group	$566.49 million	0.63	-$2.39 million	$0.03	103.33
Northann	$13.97 million	0.40	-$7.13 million	N/A	N/A

Latham Group has higher revenue and earnings than Northann.

Summary

Latham Group beats Northann on 10 of the 10 factors compared between the two stocks.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

About Northann

Northann Corp. engages in the manufacture, wholesale, and retail of the 3D printed vinyl flooring panels and other decorative panels in North America, Europe, and internationally. The company offers its products under the Benchwick brand name. Northann Corp. was founded in 2013 and is based in Elk Grove, California.