Comparing American Woodmark (AMWD) and Its Peers

American Woodmark (NASDAQ: AMWD) is one of 6 public companies in the “Millwork, veneer, plywood, & structural wood members” industry, but how does it compare to its peers? We will compare American Woodmark to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.

Risk & Volatility

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American Woodmark has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, American Woodmark’s peers have a beta of 1.66, indicating that their average stock price is 66% more volatile than the S&P 500.

Profitability

This table compares American Woodmark and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Woodmark 5.56% 17.54% 9.02%
American Woodmark Competitors 4.81% 203.28% 8.02%

Analyst Ratings

This is a breakdown of recent recommendations for American Woodmark and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Woodmark 0 1 2 0 2.67
American Woodmark Competitors 32 174 299 6 2.55

American Woodmark currently has a consensus price target of $142.00, indicating a potential upside of 52.77%. As a group, “Millwork, veneer, plywood, & structural wood members” companies have a potential upside of 22.74%. Given American Woodmark’s stronger consensus rating and higher possible upside, analysts clearly believe American Woodmark is more favorable than its peers.

Insider & Institutional Ownership

75.6% of American Woodmark shares are owned by institutional investors. Comparatively, 73.6% of shares of all “Millwork, veneer, plywood, & structural wood members” companies are owned by institutional investors. 1.1% of American Woodmark shares are owned by insiders. Comparatively, 13.9% of shares of all “Millwork, veneer, plywood, & structural wood members” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares American Woodmark and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
American Woodmark $1.03 billion $71.19 million 20.89
American Woodmark Competitors $3.03 billion $153.46 million 19.90

American Woodmark’s peers have higher revenue and earnings than American Woodmark. American Woodmark is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

American Woodmark beats its peers on 8 of the 13 factors compared.

American Woodmark Company Profile

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The Company offers framed stock cabinets in approximately 500 different cabinet lines, ranging in price from relatively inexpensive to medium-priced styles. Styles vary by design and color from natural wood finishes to low-pressure laminate surfaces. The product offering of stock cabinets includes approximately 90 door designs in over 20 colors. Stock cabinets consist of cabinet interiors of varying dimensions and construction options, and a maple, oak, cherry, or hickory front frame, door and/or drawer front. The Company’s products are sold under the brand names of American Woodmark, Simply Woodmark, Timberlake, Shenandoah Cabinetry, Shenandoah Value Series and Waypoint Living Spaces. The Company’s primary raw materials used include hard maple, soft maple, oak, cherry, and hickory lumber and plywood.

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