Head to Head Analysis: Lowe’s Companies (NYSE:LOW) and Travis Perkins (OTCMKTS:TPRKY)

Travis Perkins (OTCMKTS:TPRKY) and Lowe’s Companies (NYSE:LOW) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Travis Perkins and Lowe’s Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travis Perkins	N/A	N/A	N/A
Lowe’s Companies	8.19%	-47.55%	15.28%

Risk & Volatility

Travis Perkins has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

74.1% of Lowe’s Companies shares are owned by institutional investors. 0.3% of Lowe’s Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Travis Perkins and Lowe’s Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travis Perkins	0	0	0	0	0.00
Lowe’s Companies	0	10	15	0	2.60

Lowe’s Companies has a consensus target price of $277.92, indicating a potential upside of 1.64%. Given Lowe’s Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Lowe’s Companies is more favorable than Travis Perkins.

Valuation and Earnings

This table compares Travis Perkins and Lowe’s Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travis Perkins	$6.05 billion	N/A	$47.39 million	N/A	N/A
Lowe’s Companies	$83.72 billion	1.84	$7.73 billion	$11.99	22.80

Lowe’s Companies has higher revenue and earnings than Travis Perkins.

Dividends

Travis Perkins pays an annual dividend of $0.14 per share and has a dividend yield of 1.4%. Lowe’s Companies pays an annual dividend of $4.60 per share and has a dividend yield of 1.7%. Lowe’s Companies pays out 38.4% of its earnings in the form of a dividend.

Summary

Lowe’s Companies beats Travis Perkins on 11 of the 13 factors compared between the two stocks.

About Travis Perkins

Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products. Additionally, the company manufactures and supplies staircases, i-joists, precision floor kits, painted MDF profiles, and door kits/sets. The company markets its products under Travis Perkins, Toolstation, BSS, Keyline, and CCF brands. It sells its products through branches and distribution centres, as well as online. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.

About Lowe’s Companies

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.