Head to Head Comparison: Northwest Pipe (NASDAQ:NWPX) vs. A.M. Castle & Co. (OTCMKTS:CTAM)

Northwest Pipe (NASDAQ:NWPX) and A.M. Castle & Co. (OTCMKTS:CTAM) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Earnings and Valuation

This table compares Northwest Pipe and A.M. Castle & Co.’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northwest Pipe	$444.36 million	0.71	$21.07 million	$2.09	15.24
A.M. Castle & Co.	N/A	N/A	N/A	N/A	N/A

Northwest Pipe has higher revenue and earnings than A.M. Castle & Co..

Profitability

This table compares Northwest Pipe and A.M. Castle & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northwest Pipe	4.74%	6.36%	3.55%
A.M. Castle & Co.	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Northwest Pipe and A.M. Castle & Co., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northwest Pipe	0	0	1	0	3.00
A.M. Castle & Co.	0	0	0	0	N/A

Northwest Pipe currently has a consensus target price of $40.00, indicating a potential upside of 25.59%. Given Northwest Pipe’s higher possible upside, equities analysts clearly believe Northwest Pipe is more favorable than A.M. Castle & Co..

Institutional & Insider Ownership

80.6% of Northwest Pipe shares are held by institutional investors. 2.7% of Northwest Pipe shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Northwest Pipe beats A.M. Castle & Co. on 8 of the 8 factors compared between the two stocks.

About Northwest Pipe

Northwest Pipe Company, together with its subsidiaries, engages in the manufacture and supply of water-related infrastructure products in North America. It operates in two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast). The SPP segment offers large-diameter and high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. Its products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications. In addition, this segment makes products for industrial plant piping systems and certain structural applications. The Precast segment provides stormwater and wastewater technology products, precast, and reinforced concrete products, including reinforced concrete pipe, manholes, box culverts, vaults and catch basins, pump lift stations, oil water separators, biofiltration units, steel casing pipes, and bar-wrapped concrete cylinder pipes, as well as pipeline system joints, fittings, specialized components, and other environmental and engineered solutions. The company sells its water infrastructure products under ParkUSA, Geneva Pipe and Precast, Permalok, and Northwest Pipe Company brands primarily to installation contractors. Northwest Pipe Company was incorporated in 1966 and is headquartered in Vancouver, Washington.

About A.M. Castle & Co.

A.M. Castle & Co. engages in the distribution of specialty metals and supply chain services. The firm serves the producer equipment, commercial and military aircraft, heavy equipment, industrial goods, and construction equipment sectors. Its products include alloy and stainless steels, nickel alloys, aluminum, titanium, and carbon. The company was founded in 1890 and is headquartered in Oak Brook, IL.