Head to Head Survey: CRH (NYSE:CRH) & Frontdoor (NASDAQ:FTDR)

CRH (NYSE:CRH) and Frontdoor (NASDAQ:FTDR) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Volatility & Risk

CRH has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Frontdoor has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares CRH and Frontdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CRH	$35.57 billion	2.36	$3.46 billion	$5.02	24.94
Frontdoor	$2.04 billion	1.91	$235.00 million	$3.51	15.38

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

Profitability

This table compares CRH and Frontdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CRH	9.30%	16.25%	6.94%
Frontdoor	12.87%	122.74%	14.33%

Institutional and Insider Ownership

62.5% of CRH shares are held by institutional investors. 0.1% of CRH shares are held by company insiders. Comparatively, 1.5% of Frontdoor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CRH and Frontdoor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CRH	0	2	14	1	2.94
Frontdoor	1	3	2	0	2.17

CRH presently has a consensus target price of $130.64, suggesting a potential upside of 4.34%. Frontdoor has a consensus target price of $59.75, suggesting a potential upside of 10.67%. Given Frontdoor’s higher possible upside, analysts clearly believe Frontdoor is more favorable than CRH.

Summary

CRH beats Frontdoor on 10 of the 15 factors compared between the two stocks.

About CRH

CRH plc, together with its subsidiaries, provides building materials solutions in Ireland and internationally. It operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions. The company provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings; and produces and sells aggregates, cement, readymixed concrete, and asphalt, as well as provides paving and construction services. It also manufactures, supplies, and delivers solutions for the built environment in communities across North America; and offers building and infrastructure solutions serving complex critical utility infrastructure, such as water, energy, transportation, and telecommunications projects, and outdoor living solutions for enhancing private and public spaces. In addition, the company combines materials, products, and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces for the built environment. Further, it produces and supplies precast and pre-stressed concrete products comprising floor and wall elements, beams, vaults, pipes, and manholes; granite, limestone, and sandstone; concrete and polymer-based products, such as underground vaults, drainage systems, utility enclosures, and modular precast structures; engineered steel, polymer-based anchoring, fixing, and connecting solutions; concrete masonry, hardscape and related products, including pavers, blocks and curbs, retaining walls, and slabs; and fencing and railing systems, composite decking, lawn and garden products, and packaged concrete mixes. The company was founded in 1936 and is headquartered in Dublin, Ireland.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.