Comparing CSW Industrials (NYSE:CSW) & Owens Corning (NYSE:OC)

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

Dividends

CSW Industrials pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. Owens Corning pays an annual dividend of $3.16 per share and has a dividend yield of 2.6%. CSW Industrials pays out 16.5% of its earnings in the form of a dividend. Owens Corning pays out -39.2% 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. CSW Industrials has increased its dividend for 6 consecutive years and Owens Corning has increased its dividend for 10 consecutive years. Owens Corning is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CSW Industrials and Owens Corning, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSW Industrials	0	6	1	2	2.56
Owens Corning	1	5	9	3	2.78

CSW Industrials currently has a consensus price target of $347.57, suggesting a potential upside of 16.91%. Owens Corning has a consensus price target of $164.15, suggesting a potential upside of 32.67%. Given Owens Corning’s stronger consensus rating and higher probable upside, analysts clearly believe Owens Corning is more favorable than CSW Industrials.

Profitability

This table compares CSW Industrials and Owens Corning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSW Industrials	10.34%	17.41%	8.90%
Owens Corning	-6.81%	20.52%	6.21%

Earnings & Valuation

This table compares CSW Industrials and Owens Corning”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSW Industrials	$1.08 billion	4.47	$112.04 million	$7.29	40.78
Owens Corning	$9.85 billion	0.99	-$522.00 million	($8.06)	-15.35

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

Volatility & Risk

CSW Industrials has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Owens Corning has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

82.8% of CSW Industrials shares are owned by institutional investors. Comparatively, 88.4% of Owens Corning shares are owned by institutional investors. 1.2% of CSW Industrials shares are owned by company insiders. Comparatively, 0.9% of Owens Corning shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Owens Corning beats CSW Industrials on 11 of the 18 factors compared between the two stocks.

About CSW Industrials

CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. It operates through three segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The Contractor Solutions segment provides condensate pads, pans, pumps, switches, and traps; cements, diffusers, grilles, registers, solvents, thread sealants, and vents; line set covers; refrigerant caps; wire pulling head tools; electrical protection, chemical maintenance, and installation supplies for HVAC; ductless mini-split systems installation support tools and accessories; and drain waste and vent system products for use in HVAC/R, plumbing, general industrial, architecturally specified building products. The Engineered Building Solutions segment offers architectural railings and associated services; fire and smoke protection solutions; and pre-engineered and custom architectural building components for use in architecturally specified building products. The Specialized Reliability Solutions segment provides compounds, lubricants, lubricant management products, and sealants; desiccant breather filtration products; and contamination control, industrial maintenance and repair, rail friction modifiers, sealants, and operations solutions for use in energy, general industrial, mining, and rail transportation. The company was incorporated in 2014 and is headquartered in Dallas, Texas.

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.