Investors are evaluating the potential of two small-cap construction companies, Springview (NASDAQ:SPHL) and Latham Group (NASDAQ:SWIM). A detailed comparison reveals significant differences in their financial metrics, including institutional ownership, risk factors, earnings, and analyst recommendations.
Institutional Ownership and Insider Stakes
Institutional investors hold a substantial portion of Latham Group, with 84.0% of its shares owned by these entities. This strong institutional backing often indicates confidence in the company’s long-term growth potential. In contrast, Springview has not disclosed its institutional ownership percentage, but 6.9% of Latham’s shares are held by insiders, pointing to a degree of insider confidence as well.
Risk and Volatility Assessment
Risk assessment is crucial for potential investors. Springview has a beta of 1.76, suggesting its stock price is 76% more volatile than the S&P 500 index. Meanwhile, Latham Group boasts a slightly lower beta of 1.71, indicating it is 71% more volatile than the index. This data suggests that both companies carry higher risk compared to broader market movements, but Springview displays a marginally greater volatility.
Earnings and valuation metrics provide further insight into their financial health. Although Springview shows higher earnings, it also reports lower revenue compared to Latham Group. This may reflect varying business models or market demands.
Analyst Recommendations and Profitability
According to MarketBeat.com, Latham Group holds a consensus target price of $7.44, which translates to a potential upside of 5.35%. Analysts favor Latham Group over Springview based on its stronger consensus rating and favorable growth prospects.
Profitability metrics illustrate further differences. A comparative analysis reveals that Latham Group outperforms Springview in various critical financial areas, including net margins and returns on equity. This performance may make Latham Group a more attractive investment option for those focused on profitability.
Company Profiles
Springview operates through its wholly-owned subsidiary, Springview Enterprises Pte. Ltd., specializing in designing and constructing residential and commercial buildings in Singapore. The company handles four main types of projects: new construction, reconstruction, additions and alterations, and general contracting. Established in 2002, Springview emphasizes customer relationships and effective communication, which it believes are essential for expanding its market share.
In contrast, Latham Group has a history dating back to 1956 and is headquartered in Latham, New York. The company designs, manufactures, and markets in-ground residential swimming pools across North America, Australia, and New Zealand. Under various brand names, Latham Group offers a diverse portfolio, including fiberglass pools and pool accessories.
Both companies serve distinct markets within the construction sector, presenting unique investment opportunities based on their respective business models and financial performances.
In summary, Latham Group outperforms Springview in several key areas. With a higher level of institutional ownership, favorable analyst recommendations, and a stronger profitability profile, Latham Group appears to be the more attractive option for investors seeking growth within the construction industry.
