Investors are keen to understand how Compagnie de Saint-Gobain and Owens Corning stack up against each other as potential stock options. Both companies operate in the construction sector, but they exhibit significant differences in profitability, dividends, institutional ownership, and analyst ratings.
Profitability and Financial Metrics
When evaluating profitability, key metrics such as net margins, return on equity, and return on assets reveal where each company stands. Compagnie de Saint-Gobain, a leader in materials and solutions for construction, has higher revenue and earnings than its counterpart, Owens Corning. This suggests a robust financial position that could appeal to growth-oriented investors.
Dividend Performance
In terms of dividends, Owens Corning outperforms Compagnie de Saint-Gobain significantly. The former pays an annual dividend of $2.76 per share, translating to a yield of 2.4%. In contrast, Compagnie de Saint-Gobain offers a smaller annual dividend of $0.31 per share, with a yield of 1.5%. Notably, Owens Corning has a history of increasing its dividend for 10 consecutive years, demonstrating a commitment to returning value to shareholders. This makes Owens Corning a more attractive option for dividend-seeking investors.
Ownership and Analyst Insights
Ownership structure also plays a crucial role in assessing these companies. An impressive 88.4% of Owens Corning shares are held by institutional investors, indicating strong confidence from major investment entities in its future growth potential. In contrast, only 0.8% of the shares are owned by insiders. This disparity may suggest that Owens Corning is perceived as a more stable investment.
Analysts have provided a consensus price target of $155.58 for Owens Corning, indicating a potential upside of 36.91%. This positive outlook from analysts further solidifies Owens Corning’s position as the preferred stock between the two, as they expect it to outperform Compagnie de Saint-Gobain in the near term.
Company Profiles
Compagnie de Saint-Gobain, headquartered in Courbevoie, France, was established in 1665. The company designs and manufactures a wide range of materials for construction, operating through various segments including High Performance Solutions and Southern Europe Middle East & Africa. Its extensive product offerings span glazing solutions, plaster-based products, insulation materials, and construction chemicals, among others.
Owens Corning, on the other hand, was incorporated in 1938 and is based in Toledo, Ohio. It operates in three main segments: Roofing, Insulation, and Composites. The company produces a variety of building materials, including thermal and acoustical insulation products and roofing shingles, which are sold both domestically and internationally.
In summary, when comparing Compagnie de Saint-Gobain and Owens Corning, the latter shows superior performance in key areas such as dividends, institutional ownership, and analyst ratings. With Owens Corning leading in nine out of fifteen critical factors, it appears to be the stronger investment choice for those looking to enter the construction materials market.
