Head-To-Head Contrast: DIRTT Environmental Solutions (NASDAQ:DRTT) and Tecnoglass (NYSE:TGLS)

Tecnoglass (NYSE:TGLS) and DIRTT Environmental Solutions (NASDAQ:DRTT) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Tecnoglass has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, DIRTT Environmental Solutions has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Valuation & Earnings

This table compares Tecnoglass and DIRTT Environmental Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tecnoglass	$983.61 million	1.80	$159.57 million	$2.84	14.02
DIRTT Environmental Solutions	$170.63 million	0.37	-$54.96 million	($0.25)	-2.42

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

Profitability

This table compares Tecnoglass and DIRTT Environmental Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tecnoglass	12.35%	17.84%	10.14%
DIRTT Environmental Solutions	-12.81%	-150.32%	-15.10%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tecnoglass and DIRTT Environmental Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tecnoglass	0	2	3	0	2.60
DIRTT Environmental Solutions	0	0	0	0	0.00

Tecnoglass presently has a consensus target price of $63.33, suggesting a potential upside of 59.09%. Given Tecnoglass’ stronger consensus rating and higher possible upside, research analysts plainly believe Tecnoglass is more favorable than DIRTT Environmental Solutions.

Institutional and Insider Ownership

37.3% of Tecnoglass shares are held by institutional investors. Comparatively, 58.7% of DIRTT Environmental Solutions shares are held by institutional investors. 0.1% of Tecnoglass shares are held by company insiders. Comparatively, 40.5% of DIRTT Environmental Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Tecnoglass beats DIRTT Environmental Solutions on 12 of the 14 factors compared between the two stocks.

About Tecnoglass

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

About DIRTT Environmental Solutions

DIRTT Environmental Solutions Ltd. operates as a interior construction company in Canada. Its ICE software provides the industrialized construction system to design, visualize, organize, configure, and install the job. The company offers interior solutions to doors, casework, timber, electrical, networks, access floors, solid, glass, combination, leaf folding, and headwalls. It serves retail, technology, hospitality, manufacturing, energy, healthcare, education, government, military, professional, and financial service sectors. DIRTT Environmental Solutions Ltd. was incorporated in 2003 and is headquartered in Calgary, Canada.