Investors looking at small-cap construction companies may find themselves weighing the merits of two notable players: Springview and Latham Group. Both firms, listed on NASDAQ as SPHL and SWIM respectively, present unique investment opportunities. This analysis compares their institutional ownership, risk profiles, valuations, profitability, analyst recommendations, and earnings performance to determine which stock may be the better option.
Institutional Ownership and Insider Holdings
Institutional investors hold a significant portion of Latham Group, with 84.0% of shares owned by these entities. This strong institutional backing often indicates confidence in a company’s long-term growth potential. In contrast, Springview has not disclosed a comparable percentage, but 6.9% of Latham Group shares are held by insiders, further demonstrating the alignment of interests between management and shareholders.
Risk and Volatility
When assessing risk, Springview has a beta of 1.76, indicating its stock price is 76% more volatile than the S&P 500. Latham Group, with a beta of 1.71, shows similar volatility, being 71% more volatile than the benchmark index. Investors should consider these volatility measures when evaluating their risk tolerance.
Valuation and Earnings Performance
In terms of earnings, Springview reports higher earnings than Latham Group, but its revenue is lower. This discrepancy may be an important factor for investors prioritizing revenue growth versus earnings potential. It is essential to analyze how each company utilizes its earnings and revenue to foster growth and profitability in the long term.
Analysts have made their assessments clear. According to MarketBeat.com, Latham Group has a consensus target price of $7.44, suggesting a potential upside of 5.35%. With a stronger consensus rating and a more favorable outlook, analysts appear to favor Latham Group over Springview.
Profitability Metrics
Profitability comparisons between Springview and Latham Group reveal that the latter outperforms in several key metrics, including net margins and returns on equity and assets. Such metrics are crucial indicators of a company’s financial health and efficiency in generating profits from its investments.
Company Profiles
Springview, through its wholly-owned subsidiary Springview Enterprises Pte. Ltd., operates primarily in Singapore. The company specializes in designing and constructing residential and commercial buildings, offering services that include new construction, reconstruction, and general contracting. Established in 2002, Springview has built a reputation in the competitive Singaporean real estate market, which is critical for attracting clients and securing projects.
In contrast, Latham Group, founded in 1956 and headquartered in Latham, New York, focuses on the design, manufacturing, and marketing of in-ground residential swimming pools. The company has a robust portfolio that includes fiberglass pools and pool covers, operating across North America, Australia, and New Zealand. Its established presence in these markets positions it favorably within the construction industry.
Both companies have their strengths, and while Latham Group leads in several categories, Springview boasts a solid operational history and a focused market niche. An informed decision will depend on individual investor priorities such as risk tolerance, growth expectations, and sectoral preferences.
In summary, while Latham Group outperforms Springview in multiple areas, including institutional ownership and analyst ratings, Springview offers a compelling profile with its specialized construction services in Singapore. Investors should weigh these factors carefully as they consider their next steps in the stock market.