Financial Analysis: Caesarstone (NASDAQ:CSTE) vs. Grafton Group (OTCMKTS:GROUF)

Caesarstone (NASDAQ:CSTE) and Grafton Group (OTCMKTS:GROUF) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Earnings & Valuation

This table compares Caesarstone and Grafton Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caesarstone	$406.18 million	0.09	-$42.83 million	($1.63)	-0.67
Grafton Group	$2.92 billion	0.85	$155.92 million	N/A	N/A

Grafton Group has higher revenue and earnings than Caesarstone.

Insider and Institutional Ownership

33.7% of Caesarstone shares are held by institutional investors. Comparatively, 8.2% of Grafton Group shares are held by institutional investors. 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 Caesarstone and Grafton Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caesarstone	-14.77%	-16.14%	-7.93%
Grafton Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Caesarstone and Grafton Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesarstone	1	0	0	0	1.00
Grafton Group	0	0	1	0	3.00

Risk & Volatility

Caesarstone has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Grafton Group has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Summary

Grafton Group beats Caesarstone on 9 of the 10 factors compared between the two stocks.

About Caesarstone

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.

About Grafton Group

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands. The company’s Retailing segment retails home and garden products through stores, including DIY products, paints, lighting products, homestyle products, housewares, bathroom products, and kitchens, as well as gardening and Christmas products under the Woodie’s brand. Its Manufacturing segment manufactures dry mortars and wooden staircases; and drainage, ducting and roofline systems under the CPI Mortar, StairBox, and MFP brand names. Grafton Group plc was founded in 1902 and is based in Dublin, Ireland.