Critical Analysis: Gibraltar Industries (NASDAQ:ROCK) versus Aspen Aerogels (NYSE:ASPN)

Aspen Aerogels (NYSE:ASPN) and Gibraltar Industries (NASDAQ:ROCK) are both small-cap construction companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares Aspen Aerogels and Gibraltar Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Aerogels	$352.85 million	0.90	$13.38 million	($3.72)	-1.03
Gibraltar Industries	$1.38 billion	1.31	$137.34 million	$0.08	769.25

Gibraltar Industries has higher revenue and earnings than Aspen Aerogels. Aspen Aerogels is trading at a lower price-to-earnings ratio than Gibraltar Industries, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Aspen Aerogels has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Aspen Aerogels and Gibraltar Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Aerogels	-78.53%	2.92%	1.85%
Gibraltar Industries	10.08%	12.91%	9.18%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Aspen Aerogels and Gibraltar Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Aerogels	2	2	4	1	2.44
Gibraltar Industries	0	2	0	0	2.00

Aspen Aerogels currently has a consensus target price of $12.67, indicating a potential upside of 229.43%. Given Aspen Aerogels’ stronger consensus rating and higher possible upside, equities analysts clearly believe Aspen Aerogels is more favorable than Gibraltar Industries.

Insider and Institutional Ownership

97.6% of Aspen Aerogels shares are owned by institutional investors. Comparatively, 98.4% of Gibraltar Industries shares are owned by institutional investors. 4.3% of Aspen Aerogels shares are owned by insiders. Comparatively, 0.5% of Gibraltar Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Gibraltar Industries beats Aspen Aerogels on 9 of the 15 factors compared between the two stocks.

About Aspen Aerogels

Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.

About Gibraltar Industries

Gibraltar Industries, Inc. manufactures and provides products and services for the renewable energy, residential, agtech, and infrastructure markets in the United States and internationally. It operates through four segments: Renewables, Residential, Agtech, and Infrastructure. The Renewables segment designs, engineers, manufactures, and installs solar racking and electrical balance of systems for commercial and distributed generation scale solar installations. The Residential segment offers roof and foundation ventilation products and accessories; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, pipe flashings, and remote-controlled deck awnings and valances for sun protection. The Agtech segment offers growing and processing solutions, including the designing, engineering, manufacturing, construction, maintenance, and support of greenhouses; and indoor growing operations for retail, fruits and vegetables, flowers, cannabis, commercial, institutional and conservatories, and car wash structure applications. The Infrastructure segment offers expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems. It serves solar developers, home improvement retailers, wholesalers, distributors, and contractors, as well as institutional and commercial growers of fruit, vegetables, flowers, and plants. Gibraltar Industries, Inc. was founded in 1972 and is headquartered in Buffalo, New York.