Over the past three months, the Household Products industry has been one of the top growth leaders in the S&P 500 index, up 23.7%.
Some of the largest companies in this industry (by market capitalization) are: Garmin ($34.5B), which develops navigation software and equipment for consumers in 100 countries, and PulteGroup ($28.0B), a US-based construction company that provides development and related services.
Based on the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria according to the methodology of Stanford University professor Joseph Piotroski.
As you can see, Garmin is showing stronger results in terms of fundamental data. The company outperforms its competitor PulteGroup in terms of profitability and efficiency.
Over the past 3 months, Garmin shares have risen by +10.4%, while PulteGroup’s have increased by +19.8% (the S&P 500 index is up +6.8%). PulteGroup outperformed its closest competitor and demonstrated better results compared to the index.
So, the winner in today’s battle is Garmin (GRMN). Although PulteGroup’s shares show better profitability and prevail in terms of funding, Garmin’s business looks healthier in terms of changes in return on assets, liquidity, and asset turnover.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
