Owens Corning (NYSE:OC – Get Free Report) and Caesarstone (NASDAQ:CSTE – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Owens Corning and Caesarstone, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Owens Corning | 4 | 5 | 7 | 2 | 2.39 |
| Caesarstone | 1 | 0 | 0 | 0 | 1.00 |
Owens Corning presently has a consensus target price of $140.93, indicating a potential upside of 19.88%. Given Owens Corning’s stronger consensus rating and higher possible upside, equities analysts clearly believe Owens Corning is more favorable than Caesarstone.
Institutional & Insider Ownership
88.4% of Owens Corning shares are owned by institutional investors. Comparatively, 33.7% of Caesarstone shares are owned by institutional investors. 0.9% of Owens Corning shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Owens Corning and Caesarstone’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Owens Corning | -4.42% | 19.14% | 5.51% |
| Caesarstone | -48.05% | -29.40% | -9.43% |
Earnings & Valuation
This table compares Owens Corning and Caesarstone”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Owens Corning | $10.10 billion | 0.90 | -$522.00 million | ($5.32) | -22.10 |
| Caesarstone | $397.23 million | 0.11 | -$137.47 million | ($4.13) | -0.32 |
Caesarstone has lower revenue, but higher earnings than Owens Corning. Owens Corning is trading at a lower price-to-earnings ratio than Caesarstone, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Owens Corning has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Caesarstone has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.
Summary
Owens Corning beats Caesarstone on 12 of the 15 factors compared between the two stocks.
About Owens Corning
Owens Corning is a building-products company that develops and manufactures materials for residential and commercial construction. Its products include roofing shingles and components, insulation for buildings and industrial applications, and interior and exterior doors. Founded in 1938 through the combination of Owens-Illinois Glass Company and Corning Glass Works’ fiberglass operations, the company has a long history of developing glass-fiber-based materials. It is headquartered in Toledo, Ohio, and serves customers in North America and international markets.
About Caesarstone
Caesarstone Ltd. (NASDAQ: CSTE) is a manufacturer and distributor of engineered surfaces used primarily in residential and commercial construction and remodeling. The company is best known for quartz surfaces designed for kitchen countertops, bathroom vanities and other interior applications. Its product portfolio also includes porcelain and natural stone surfaces, along with related designs for wall cladding, flooring, tables and outdoor areas. Caesarstone markets its products through distributors, fabricators, retailers, kitchen and bath specialists, and other building-materials channels.
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