Gibraltar Industries (NASDAQ: ROCK) and Commercial Metals (NYSE:CMC) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Valuation & Earnings
This table compares Gibraltar Industries and Commercial Metals’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gibraltar Industries||$958.80 million||0.95||$109.22 million||$0.71||40.35|
|Commercial Metals||$4.82 billion||0.44||$306.06 million||$0.65||28.42|
Commercial Metals has higher revenue and earnings than Gibraltar Industries. Commercial Metals is trading at a lower price-to-earnings ratio than Gibraltar Industries, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Gibraltar Industries has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.
Commercial Metals pays an annual dividend of $0.48 per share and has a dividend yield of 2.6%. Gibraltar Industries does not pay a dividend. Commercial Metals pays out 73.8% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for Gibraltar Industries and Commercial Metals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gibraltar Industries presently has a consensus target price of $34.50, suggesting a potential upside of 20.42%. Commercial Metals has a consensus target price of $20.75, suggesting a potential upside of 12.34%. Given Gibraltar Industries’ stronger consensus rating and higher possible upside, research analysts plainly believe Gibraltar Industries is more favorable than Commercial Metals.
Institutional and Insider Ownership
90.6% of Commercial Metals shares are owned by institutional investors. 0.5% of Gibraltar Industries shares are owned by insiders. Comparatively, 1.3% of Commercial Metals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Gibraltar Industries and Commercial Metals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Gibraltar Industries beats Commercial Metals on 10 of the 16 factors compared between the two stocks.
Gibraltar Industries Company Profile
Gibraltar Industries, Inc. is a manufacturer and distributor of building products for industrial, transportation infrastructure, residential housing, renewable energy and resource conservation markets. The Company’s segments include Residential Products; Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment services residential housing construction and residential repair and remodeling activity with products including roof and foundation ventilation products, rain dispersion products and roof ventilation accessories. The Industrial and Infrastructure Products segment focuses on a range of markets, including industrial and commercial construction, automotive, airports and energy and power generation markets with products. The Renewable Energy and Conservation segment focuses on the design, engineering, manufacturing and installation of solar racking systems and commercial, institutional and retail greenhouse structures.
Commercial Metals Company Profile
Commercial Metals Company, together with its subsidiaries, manufactures, recycles and markets steel and metal products, related materials and services through a network. The Company’s Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment consists of steel mills, commonly referred to as minimills that produce reinforcing bar (rebar), angles, flats and rounds. Its Americas Fabrication segment consists of its steel fabrication facilities that bend, weld, cut and fabricate steel, primarily rebar. Its International Mill segment consists of its mill, recycling and fabrication operations located in Poland. Its International Marketing and Distribution segment includes international operations for the sales, distribution and processing of primary and secondary metals, fabricated metals, semi-finished, long and flat steel products, and other industrial products.
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