TopBuild (NYSE:BLD – Get Free Report) and Owens Corning (NYSE:OC – Get Free Report) are both construction companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Insider and Institutional Ownership
95.7% of TopBuild shares are owned by institutional investors. Comparatively, 88.4% of Owens Corning shares are owned by institutional investors. 0.5% of TopBuild shares are owned by company insiders. Comparatively, 0.9% of Owens Corning shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for TopBuild and Owens Corning, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TopBuild | 1 | 7 | 7 | 1 | 2.50 |
| Owens Corning | 1 | 5 | 9 | 1 | 2.63 |
Risk & Volatility
TopBuild has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Owens Corning has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Earnings and Valuation
This table compares TopBuild and Owens Corning”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TopBuild | $5.41 billion | 2.29 | $521.73 million | $18.30 | 24.02 |
| Owens Corning | $10.10 billion | 0.98 | -$522.00 million | ($6.40) | -19.15 |
TopBuild has higher earnings, but lower revenue than Owens Corning. Owens Corning is trading at a lower price-to-earnings ratio than TopBuild, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TopBuild and Owens Corning’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TopBuild | 9.65% | 25.66% | 9.93% |
| Owens Corning | -5.17% | 21.93% | 7.33% |
Summary
TopBuild beats Owens Corning on 9 of the 14 factors compared between the two stocks.
About TopBuild
TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building material products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It provides insulation products and accessories, glass and windows, rain gutters, garage doors, fireplaces, roofing materials, closet shelving, and other products. The company also offers insulation installation services for fiberglass batts and rolls, blown-in loose fill fiberglass, polyurethane spray foam, and blown-in loose fill cellulose applications. In addition, it distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial end markets. The company serves single-family homebuilders, single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. It operates installation branches and distribution centers in the United States and Canada. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.
About Owens Corning
Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications. This segment sells its products through distributors, home centers, and lumberyards, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and composite lumber. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.
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