Analyzing Arcosa (NYSE:ACA) & Aspen Aerogels (NYSE:ASPN)

Aspen Aerogels (NYSE:ASPN) and Arcosa (NYSE:ACA) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

97.6% of Aspen Aerogels shares are held by institutional investors. Comparatively, 90.7% of Arcosa shares are held by institutional investors. 4.3% of Aspen Aerogels shares are held by insiders. Comparatively, 2.0% of Arcosa shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Aspen Aerogels and Arcosa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Aerogels	-86.52%	-0.20%	-0.13%
Arcosa	5.25%	7.46%	3.74%

Valuation & Earnings

This table compares Aspen Aerogels and Arcosa”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Aerogels	$452.70 million	0.54	$13.38 million	($3.72)	-0.79
Arcosa	$2.57 billion	2.12	$93.70 million	$3.02	36.82

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

Volatility & Risk

Aspen Aerogels has a beta of 2.95, indicating that its share price is 195% more volatile than the S&P 500. Comparatively, Arcosa has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Aspen Aerogels and Arcosa, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Aerogels	3	2	4	1	2.30
Arcosa	0	1	4	0	2.80

Aspen Aerogels presently has a consensus price target of $12.67, indicating a potential upside of 329.38%. Arcosa has a consensus price target of $115.00, indicating a potential upside of 3.43%. Given Aspen Aerogels’ higher possible upside, research analysts clearly believe Aspen Aerogels is more favorable than Arcosa.

Summary

Arcosa beats Aspen Aerogels on 9 of the 14 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 Arcosa

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in the United States. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty/other products, as well as for infrastructure construction. The Engineered Structures segment offers utility structures, wind towers, traffic structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars and transportation equipment; cast components for industrial and mining sectors; and axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.