Head to Head Comparison: Caesarstone (CSTE) vs. Its Peers

Caesarstone (NASDAQ:CSTE) is one of 38 publicly-traded companies in the “BLDG&CONST – MISC” industry, but how does it weigh in compared to its rivals? We will compare Caesarstone to related businesses based on the strength of its earnings, analyst recommendations, institutional ownership, risk, profitability, valuation and dividends.

Risk and Volatility

Caesarstone has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Caesarstone’s rivals have a beta of 1.00, indicating that their average share price is 0% less volatile than the S&P 500.

Earnings & Valuation

This table compares Caesarstone and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Caesarstone	$443.22 million	-$42.83 million	-1.46
Caesarstone Competitors	$6.91 billion	$580.08 million	22.42

Caesarstone’s rivals have higher revenue and earnings than Caesarstone. Caesarstone is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Caesarstone and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caesarstone	-11.93%	-13.23%	-6.76%
Caesarstone Competitors	-11.01%	65.74%	4.94%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Caesarstone and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesarstone	0	0	1	0	3.00
Caesarstone Competitors	242	1410	2265	108	2.56

Caesarstone currently has a consensus price target of $6.00, indicating a potential upside of 203.03%. As a group, “BLDG&CONST – MISC” companies have a potential upside of 16.35%. Given Caesarstone’s stronger consensus rating and higher probable upside, analysts plainly believe Caesarstone is more favorable than its rivals.

Institutional & Insider Ownership

33.7% of Caesarstone shares are owned by institutional investors. Comparatively, 91.0% of shares of all “BLDG&CONST – MISC” companies are owned by institutional investors. 3.6% of shares of all “BLDG&CONST – MISC” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Caesarstone rivals beat Caesarstone on 10 of the 13 factors compared.

Caesarstone Company Profile

Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.