Comparing Carlisle Companies (NYSE:CSL) & Owens Corning (NYSE:OC)

Owens Corning (NYSE:OC) and Carlisle Companies (NYSE:CSL) are both large-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Volatility & Risk

Owens Corning has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Carlisle Companies has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Dividends

Owens Corning pays an annual dividend of $3.16 per share and has a dividend yield of 2.3%. Carlisle Companies pays an annual dividend of $5.00 per share and has a dividend yield of 1.4%. Owens Corning pays out -39.2% of its earnings in the form of a dividend. Carlisle Companies pays out 28.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Owens Corning has raised its dividend for 10 consecutive years and Carlisle Companies has raised its dividend for 48 consecutive years. Owens Corning is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

88.4% of Owens Corning shares are held by institutional investors. Comparatively, 89.5% of Carlisle Companies shares are held by institutional investors. 0.9% of Owens Corning shares are held by insiders. Comparatively, 1.3% of Carlisle Companies shares are held 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.

Profitability

This table compares Owens Corning and Carlisle Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Owens Corning	-6.81%	20.52%	6.21%
Carlisle Companies	14.21%	47.58%	13.46%

Valuation & Earnings

This table compares Owens Corning and Carlisle Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Owens Corning	$10.10 billion	1.09	-$522.00 million	($8.06)	-17.23
Carlisle Companies	$5.02 billion	2.79	$740.70 million	$17.43	20.25

Carlisle Companies has lower revenue, but higher earnings than Owens Corning. Owens Corning is trading at a lower price-to-earnings ratio than Carlisle Companies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Owens Corning and Carlisle Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Owens Corning	1	6	9	2	2.67
Carlisle Companies	0	6	5	0	2.45

Owens Corning presently has a consensus target price of $165.31, suggesting a potential upside of 19.03%. Carlisle Companies has a consensus target price of $402.43, suggesting a potential upside of 14.01%. Given Owens Corning’s stronger consensus rating and higher possible upside, equities analysts plainly believe Owens Corning is more favorable than Carlisle Companies.

Summary

Carlisle Companies beats Owens Corning on 10 of the 18 factors compared between the two stocks.

About Owens Corning

Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications. This segment sells its products through distributors, home centers, and lumberyards, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and composite lumber. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.

About Carlisle Companies

Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, Asia and the Middle East, Africa, and internationally. It operates through two segments: Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company produces single-ply roofing products, and warranted roof systems and accessories, including ethylene propylene diene monomer, thermoplastic polyolefin and polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. It also offers building envelope solutions, including high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems, block-molded expanded polystyrene insulation, and engineered products for HVAC applications. It sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.